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NRIs investing in Indian real estate

Compelling reasons for NRIs investing In Indian real estate: a perspective for 2022 and beyond!

India is an extremely progressive country, and in the next decade, India is bound to be one of the top 5 Economies in the world! In fact, by 2050, India will be the second-largest economy in the world!

2050-markets-table(NRIs are looking for investing in Indian real estate!)

[Source- https://www.pwc.com/ ]

share of world gdp (ppps)-2050(NRIs are looking for investing in Indian real estate!)

[Source- https://www.pwc.com/]

No wonder NRIs are looking for investing in Indian real estate!

Besides, the bond of Indian culture and values are very strong amongst Indians. While some NRIs have sold their properties, those who did not, saw unprecedented capital appreciation over the last three decades.

All over India, the property prices, whether residential plots or agricultural land, have risen to over 200 or 300 times in the last three decades. With a growing economy, this trend of Indian properties retaining their value, and further increasing will remain in the decades ahead as well! NRIs understand that!

Getting back to India and living in your own home is a delight. Many NRIs have aging parents who live in these homes. So, this way, not only are their parents or siblings taken care of, they have a place to come back which is their OWN HOME!

Besides, after working abroad, many NRIs themselves find solace amongst their own family and friends back in India.

The financial incentive for NRIs investing in Indian real estate is high.

By investing in India, NRIs are sure of hefty returns on their investment.

Plus, you have professional management Services who even take care of their properties while they are away from their motherland. This makes the job of upkeep and maintenance and renting out easier and more possible!

1. Meaning of NRI, Person of Indian Origin

  • A Non-Resident Indian is one who has been residing outside India for more than 182 days (as per Foreign Exchange Management Act)
  • A person of Indian Origin (PIO) is a person is the one who takes up citizenship of another country. Their father or grandfather were Indian citizens
  • A PIO is one who has held an Indian Passport prior to gaining citizenship
  • A resident of India of foreign origin can also buy property in India

2. Why are NRIs or PIOs investing in residential property in India

NRIs investing in Indian real estate
  • A sense of belongingness why NRIs and POIs buy real estate in India
  • Lower cost of residential plots, and apartments in most cities like Hyderabad, Bengaluru, and NCR. Some pockets in these cities are very reasonable and have a good social infrastructure
  • Appreciation of real estate has historically been very lucrative in India, so the ROI is better if invested in Indian property
  • Falling Rupee value against most currencies allows them to gain more in Rupee terms, which is an advantage
  • The option to have a home in India in case of any situation is a solace, and a great fall-back option to have!
  • Long-term, SAFE investment and a higher rate of return on investment, especially with the advent of RERA regulation which makes it safer to invest in India

3. Advantage India- NRIs investing in Indian real estate

  • Younger population led by National and State-level governments that are focussed on Economic growth!
  • The economic liberalization since 1991 has attracted global and Foreign Direct Investments, and this is continuing
  • RERA followed by the introduction of GST has brought about greater positivity in buyers’ sentiments resulting in greater investments by NRIs
  • Post-pandemic era is bound to witness the next phase of the growth trajectory till 2030 and beyond!
  • A healthy India-level growth rate is a testimony to that. GDP Annual Growth Rate in India averaged 5.81 percent from 1951 until 2021. It reached an all-time high of 20.30 percent in quarter 2 of 2021
  • The diverse range of property segments spread across multiple cities has also helped drive demand. From luxury segment to affordable segment, each city has both the offerings in residential plots and apartment segments
  • For instance, in all the major cities, you could buy an apartment for Rs 50 lacs to over Rs 20 crores, depending on the needs of a home buyer
  • Cities like Pune, Hyderabad, Bengaluru, and many other cities are front-runners with IT/ITeS industries driving growth
  • The well-distributed Indian market comprises middle and upper-middle-class home buyers, institutional investors, high net-worth individuals, very large global institutional investors, and real estate funds
  • The rental yield from residential properties varies between 1% to 2% annually. For commercial properties, the annual rental yield is around 6% to 8% as per realistic estimations
  • This is why Indian real estate investment by foreign investors has been increasing over the years
  • The affordable housing sector has got a renewed boost not only due to a drop in the price but also due to the government rolling out various incentives and measures for first-time home buyers

The Indian Economy is set to grow, and NRIs will continue investing in Indian real estate for both financial and emotional reasons!

“All life naturally strives for growth. It is a natural phenomena. There are no conceivable limits to our growth. Once one ecosystem is outgrown, there is always a larger more comprehensive ecosystem to grow into. This should continue endlessly and exponentially.” 

– Hendrith Smith

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To know more about “7 reasons why NRIs are motivated to choose Sainikpuri, Hyderabad as their dream-home destination!Click here!

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