NRIs Focus on the Affordable and Mid-Segment for Investment
Jun 18, 2019 Real Estate News
Indian real estate is the gold mine for investors, not only for the citizens of the country but also NRIs. Higher returns and tax policies are the reason why people choose to invest in the Indian real estate. The return in real estate is higher than other investment areas like mutual funds, fixed deposits etc. Even though the time duration for the return is longer than others, the wait is worth it.
For a long time, the luxury and high- end segment of the real estate was significant investment area for the NRIs. But since the government has been pushing the affordable housing segment, it has caught attention from the NRIs as well.
The Indian real estate has witnessed a change since the government has introduced RERA and GST. More transparency, more reliability is a few key factors that have encouraged the investors to take a plunge. The foreign investments in the Indian real estate are set to reach a new height. The real estate laws now allow 100 percent FDI in construction, and with REITs in place, the real estate industry of the country is set to bloom.
In the past, NRIs have suffered after investing in the projects that have not given them good returns or have duped them. Now the NRIs are leaning towards investing in the developers that have a good reputation and who can complete the property construction on time. The affordable segment in the country comes with its advantage of taxes. This has garnered the attention from the NRIS, and they prefer to invest in the affordable segment while the luxury segment stays on a more muted tone.
The primary aim of the NRI investors is to get the rental income from their property investment. Investing in the luxury segment is a risky business as the high-end segment in the sector is still reviving slowly. While investing in affordable and mid-segment gives a good return and makes it a great investment option. Most NRIs prefer to spend in the city where they have their paternal home or in a place where they have friends and relatives, who can look after their property in their absence. It gives them a sense of security, knowing their property is not misused or is not in the hands of unreliable tenants.
The investment in luxury is only because such properties provide them with the services and lifestyle that they are used to in their resident country. But when it comes to making profits from the investment, mid-segment and affordable segment is the best choice.
For a long time, the luxury and high- end segment of the real estate was significant investment area for the NRIs. But since the government has been pushing the affordable housing segment, it has caught attention from the NRIs as well.
The Indian real estate has witnessed a change since the government has introduced RERA and GST. More transparency, more reliability is a few key factors that have encouraged the investors to take a plunge. The foreign investments in the Indian real estate are set to reach a new height. The real estate laws now allow 100 percent FDI in construction, and with REITs in place, the real estate industry of the country is set to bloom.
In the past, NRIs have suffered after investing in the projects that have not given them good returns or have duped them. Now the NRIs are leaning towards investing in the developers that have a good reputation and who can complete the property construction on time. The affordable segment in the country comes with its advantage of taxes. This has garnered the attention from the NRIS, and they prefer to invest in the affordable segment while the luxury segment stays on a more muted tone.
The primary aim of the NRI investors is to get the rental income from their property investment. Investing in the luxury segment is a risky business as the high-end segment in the sector is still reviving slowly. While investing in affordable and mid-segment gives a good return and makes it a great investment option. Most NRIs prefer to spend in the city where they have their paternal home or in a place where they have friends and relatives, who can look after their property in their absence. It gives them a sense of security, knowing their property is not misused or is not in the hands of unreliable tenants.
The investment in luxury is only because such properties provide them with the services and lifestyle that they are used to in their resident country. But when it comes to making profits from the investment, mid-segment and affordable segment is the best choice.
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