Why is Indian Real Estate the best investment option for NRIs?

M3M Atrium / Why is Indian Real Estate the best investment option for NRIs?

There is immense growth seen in the real estate sector and especially Non- Resident Indians play a major role in it as they are fascinated with buying new homes in India. The work culture that is hybrid has given them a chance to return to their homeland. It also seeks a better lifestyle. There are many other investment options to choose from like fixed incomes, stocks, etc. The pandemic has seen a slowdown in the real estate sector but post-pandemic the growth in the sector has picked up and it is the right time that will enable it to invest in the real estate market. The RBI has also hiked the repo rate by 50 basis points. Besides this, India’s Consumer Price Index Inflation has also gone down to 6.77 percent in October. There are several reasons why NRIs are investing in Indian Real Estate.

Firstly, it is seen as a profitable investment opportunity that will yield a good return on their money and expand their profits in investments. Secondly, the US, Canada, the Middle East, Europe, and other countries have shown an interest in investing in cities that have also witnessed an increase in NRIs who want to purchase a large home. Thirdly, the pandemic has changed the dynamics of Indian families. It also is giving strength to the family. Fourthly, WFH has become a trend and demands spaces in homes that are large at the same time silent. Fifthly, the fall in the value of the rupee has also fuelled demands for NRIs as they are investing their money in real estate and INR value is decreasing against the USD. At present, it is gone down Rs. 74.70 to an all-time price of Rs. 81.88. The benefit from rupee depreciation provides an advantage to them as they can buy a much cheaper property.

The latest trends show that real estate developers are catering to this new demand for homes with good amenities like well-connected lifestyles and self-sufficient gated communities. Improved and better connectivity has led to better physical infrastructure but also digital infrastructure. NRIs prefer second homes that are seen as second investment options and a steady income stream. Besides this, it is seen as a shift towards weekend homes that are options for safety and security. The introduction of RERA has brought immense transparency and made it feasible for people to purchase or sell properties hassle-free. This aspect is particularly seen as an option that increases transparency with no hidden costs involved in any transaction. Real estate also gives the option to invest in commercial properties and buildings that are very effective options for investment that is having high return rates on rents. Even the location has good rents that are bound to be increased every year. Investing in real estate is necessary. .

NRI buyers are strongly preferring for real estate over another precious assets like gold. But the price of gold has been increased and is performing poorly despite that real estate has seen an increase in value against poorly performing debts. Gold has seen as a global commodity that is precious and highly valued but due to fluctuations going on in world deals, it has led to problems economically. Thus, for NRIs real estate is a safe option for investment that yields much positive results. Technology is also playing a major role in helping NRIs to get hands of their dream homes in India. This opportunity helps real estate developers with Virtual Reality and this online search query has led to online launches that look for their NRI buyers using video conferencing. Thus, real estate has been organizing webinars and launching attractive webinars to attract the crowd.

So Indian real estate sector has witnessed a long way in the boom caused in India’s real estate that is trending and expected to be continued in the future. Buying a property for NRI is very fruitful and it has other investment options that are contributing significantly to maximize the wealth of both worlds. Additionally, it also takes away the need for multiple-party involvement of those who are engaged in the deals like brokers, local relatives, and acquaintances.