Why is Indian Real Estate an Attractive Investment Option for NRIs?

Non-resident Indians have been looking for properties in India for several years now. The real estate industry in India has seen a surge in interest from NRIs following the demonetization and adoption of RERA. The implementation of RERA has impacted the Indian real estate sector in a good way. It has led to the evolution of the market positively. NRIs are focusing on commercial cities like Hyderabad as there are a lot of top builders in Hyderabad. The recent and constantly updating norms in this industry have brought considerable transparency to the builders and property developers, making it a win-win situation for all.

Features Influencing NRIs Decision to Invest

There are several factors that are attracting more and more NRIs to invest in the Indian real estate market-

• Property prices- Due to the correction in property prices over the past few years, NRIs have the power to use their savingsto invest in properties.
• Location- It is not only the bustling commercial cities attracting NRIs; Tier II and Tier III cities are also full of lucrative options.
• Commercial Real estate- NRIs are attracted more towards commercial real estate as it offers impressive capital appreciation and rental yields.
• Weakening of rupee- The NRIs can buy flats for sale in Hyderabadas the properties are sold at a cheaper rate because of the weakening rupee. This has been quite an advantage for people earning in foreign currencies.

The benefits of investing in Real Estate

It is a wise decision to consider the pros and cons of any action before going further with it. NRIs who consider investing in Indian Real Estate should know whether it will be beneficial to go through with it or not.

Here are some advantages that can come by investing in Indian real estate-

• Retirement Plan- Most NRIs plan to return to India once they retire from their jobs abroad. Commercial real estate gives NRIs returns as a source of income that they can use in their lives after retirement. Therefore, the best real estate builders in Hyderabad consider investing in real estate property guarantees a secure future.
• Return- Returns from real estate can’t be compared to returns from other investments. The average return rate from an Indian real estate investment can go up to 10% within a few years of investing. This is advantageous for investors as they can secure maximum returns without having to bear high risks.
• Financial Portfolio- Property has proven to be a rewarding source of asset creation and capital enhancement. It provides an additional benefit of capital appreciation, which pushes the total yield towards increased value. According to top builders in Hyderabad, buying or investing in property is a great way to accumulate assets for future utilization.
• Rent- NRIs often invest in real estate and lease those properties. Hence, the money that the tenant pays also adds as a source of steady cash flow. In the case of CRE properties, these leases usually go on for long periods thus, ensuring a long-term rental income. The majority of the NRIs practice this, and therefore, it is highly beneficial for them.
• Multiple benefits- Another feature of real-estate investment in India are the multiple tax benefits that come with it. These investments garner several tax exemptions under different sectors of the Income Tax Act, which the investor can save on tax-related expenses.
• Long Term Income- NRIs trust Indian real estate investments as a strong future income choice due to the high returns rate and secure cash flow guarantee. The CRE sector is the most beneficial for real estate because of high-end properties and long-term fixed agreements that regularly provide a heavy yield.

Also read: 5 Reasons for Buying Luxury Homes

Ways to Invest

Investment in real estate can be made in several forms-

• By the method of directly purchasing it yourself or it can be received as a gift from a person who is a resident in India or from an NRI/OCI relative.
• By the method of inheritance from an Indian resident or a non-resident of India who acquired the above property at the time of acquisition in accordance with the provisions of the Foreign Exchange Act.

There is no restriction on the number of properties that an NRI or OCI can hold.

Conclusion

Due to COVID-induced lockdowns, the real estate investment rate declined in the last year. But since the enactment of RERA, sales have improved. NRIs usually buy a property in India with the primary objective of investing or using it for rental purposes. Therefore, it is an open invitation to NRIs to establish suitable benefits in India.