Know 5 Reasons about Indian Real Estate Turning Attractive to NRIs
Oct 22, 2018 Real Estate News
Recently, the rupee has been witnessed to have a significant fall against the dollar. Taking this as an advantage, the non-resident Indians (NRIs) have started eyeing on property buys in India, as per the reports. In the past several years, the Indian real estate has witnessed a lack of transparency and issues with safety instances as well as fears of sugar-coated sale propositions. Also in the past several years, after were the reasons for NRIs for being apprehensive in investing in Indian real estate, which was aggravated by demonetisation and enactment of RERA.
Now, the trend is changing. RERA has hugely influenced the Indian realty industry in a right direction. There are more transparency and consolidation, which has helped the market evolve and positively shape the industry. Besides, weakening of rupee against the dollar has attracted more investments in India.
Apart from the downfall of the rupee, several other factors are making Indian real estate attractive for NRIs.
Now, the trend is changing. RERA has hugely influenced the Indian realty industry in a right direction. There are more transparency and consolidation, which has helped the market evolve and positively shape the industry. Besides, weakening of rupee against the dollar has attracted more investments in India.
Apart from the downfall of the rupee, several other factors are making Indian real estate attractive for NRIs.
- NRIs get leverage of their additional income power by investing in properties as the prices have been corrected in the past few years.
- Regarding investment as per locations, there is a momentum of investment in Tier-2 and Tier-3 cities other than metro cities and Tier-1 cities investments in the real estate.
- The returns on property investment are good. It has been observed by Amit B Wadhwani, Managing Director, SECCPL that several NRIs from Dubai, The United States and the Middle East are more interested in settling down in India. Their preferences of locations are Karjat, Kalyan and so on. The NRIs are also interested in the commercial real estate, considering it a different kind of investment, for yielding good rental returns as well as capital.
- The weakening rupee provides more power to other currencies, and the current slow market allows them to buy properties at a lower rate in India. The fall of rupee has made it advantageous for several earnings in foreign currencies and spending the same to purchase properties in Indian Rupees. Now, Investors get more square feet of space for the same amount in foreign currency.
- The new RERA regulatory norms have created a revolution, and there are transparency and accountability on the part of real estate developers. This has resulted in a win-win situation for property investors and buyers. One could see the value of properties being lowered by 10 to 15 percent, attracting NRIs as potential buyers and investors. Around 30 per cent of NRIs are seeking to invest in properties as an asset class, and this number has been observed increasing year by year.
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