Why NRIs Keep Investing in the Indian Real Estate?

Sujan Afi S

The real estate sector of India is recognized to be very important for the overall economic status of the country. The rate of urbanization in India is high. Nevertheless, to fulfil the dream of countrywide urbanization we need to walk a long way still. Because of the high opportunity of generating satisfactory income the real estate sector of India attracts investors throughout the globe.

During the time of the pandemic Covid-19 also the rate of investment in Indian real estate by Non-Resident Indians (NRIs) was observed to be quite high. Now the question is why do NRIs keep investing in the real estate sector of India? You can go through the blog to find the answer! 

Reasons Why NRIs Invest in the Real Estate Sector of India

There are several important reasons behind the NRIs’ interest in investing in the Indian real estate sector. Let’s see some of them.

  1. Falling rupee value: Because of the continuous fall of rupee value, the NRIs generate a lot of Indian currency by converting their earnings into foreign currency. The NRIs then easily invest their income in the Indian real estate market. We know that the property value generally rises. So, they can sell the properties at a higher rate later on. They might develop business or any other thing. Up to them!
  2. Booming the Indian real estate market: The booming scenario of the Indian real estate market attracts a lot of young NRIs to invest in the Indian real estate market to secure a handsome amount of income.
  3. The simplified tax regime in the real estate sector of India: A simplified tax regime for the NRIs to invest in Indian real estate also provokes the NRIs to invest in Indian real estate.
  4. Good return of investment: The opportunity of a good return on investment also attracts several NRIs to invest in Indian real estate. They can sell the property they buy today at a higher price a few years later.
  5. High rental yields: The opportunity of generating high rental yields attracts investors to invest in Indian real estate.
  6. Retirement plan: Several NRIs choose to invest in Indian real estate for making a good retirement plan.
  7. Diversifying the investment portfolio: NRIs also choose to invest in Indian real estate to diversify their investment portfolio.
  8. High capital appreciation: The NRIs also choose the Indian real estate sector for their investment because of the opportunity of high capital appreciation of various commercial as well as residential real estate properties in India.
  9. Mode of extra income: Several NRIs choose to invest in Indian real estate by considering it to be a mode of generating an extra income. Who doesn’t want to have a sufficient bank balance to have a secure life after retirement? 
  10. Ample investing options: The Indian real estate sector provides ample investing options which also provokes the NRIs to invest in Indian real estate.
  11. Relaxed investment laws for NRIs: The Indian government has relaxed the investment laws for NRIs including the real estate sector which provokes the NRIs to invest in Indian real estate.
  12. Transparent transaction: After the implementation of the RERA acts the Indian real estate sector has become more transparent. Thus, the NRIs easily invest their money and they feel safe while doing so.
  13. Tax exemption: The tax exemption facility for the investors in the real estate sector of India attracts a lot of NRIs to invest in the Indian real estate sector. 
  14. Reduced interest in other investment options: Because of the reduction of interest in other investment options like Fixed Deposit (FD), Gold, Equity market, etc. NRIs get interested in investing in Indian real estate.

In Summary

From the above discussion, it is clear that there are several reasons why the NRIs invest in the real estate sector of India. The future of the Indian real estate sector is very bright and for generating a secure, continuous and handsome amount of income the NRIs are choosing the Indian real estate sector for their investment destinations.

The high urbanization rate in India and the booming scenario of Indian real estate also attracts a lot of NRIs to invest in Indian real estate.

I hope that the blog has served its purpose to some extent. Nevertheless, feel free to contact us via our mail id info@roodland.com in case you have any concerns.

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