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Four reasons for NRIs to invest in Indian Real Estate

The Indian Real Estate sector has become a hot topic for most NRIs worldwide. With the real estate market sentiment up in Q1 2022, it has remained persistent despite the ambiguity of war in Europe.
A survey conducted by reputed realtors showed that the stakeholders showed positive sentiments owing to their growing business, resolute economic outlook, and continued demand in the real estate space over the last six months. When asked about their financial viewpoint for India, 85 percent of them expect the overall economic momentum in Q1 2022 to recover over the next six months.

Here are some reasons for NRIs to invest in Indian Real Estate:

Falling Rupee Value
With the Indian Rupee falling against the Dollar, the NRI community can now capitalize by converting the hard-earned money into profitable investments that are profitable.

Booming Market
During the post covid pandemic, the Indian economy encountered severe hardships and challenges amidst the pandemic. After the restrictions were lifted, it witnessed a resurgence in demand in the real estate sector. With the opening of offices and the reopening of schools in the coming academic year, the need for commercial and residential space has seen a sudden upsurge.
Centrally located 3 BHK & 4 BHK sea-facing luxury homes in Mumbai especially around Worli, Prabhadevi, and Lower Parel have gained momentum in the real estate market due to the land parcel availability and the infrastructure development centered around the upcoming metro, coastal road, and Worli Sewri elevated corridor.
Sea-facing homes in south Mumbai have seen a recent upsurge in the interest amongst the home buyers. Residential projects with amenities and ease of commute like Vraj Tiara at Veer Nariman Marg, Worli offer the comfort of living in the city’s heart and provide a good neighborhood and relief of commute.

Reduced Interest rates in other instruments
Traditionally the investor community used to prefer investment tools like equity, gold, and fixed deposits to grow their money. However, the market volatility exposes them to more significant losses in the long term. Besides the rate of interest in traditional investment instruments has been reduced, Fixed deposits yield an interest of 4 to 5 percent a year compared to inflation rates, thus translating into poor returns.
On the other hand, real estate has become a rewarding investment decision for the NRI community.

Simplified Tax Regime
With the simple tax regime for foreign investments, NRIs can now park their surplus money in India. Immovable properties held for more than 24 months are considered long-term capital assets are receiving the indexation benefit of simplified taxation at 20%.
The NRI investors can directly transact with the sellers or transfer to an NRO account while buying properties in India. The simplified payment rule encourages foreign investors to invest in the Indian real estate market.
In conclusion, India is a resurgent economy, and the real estate sector will flourish shortly. The NRI community must keep investing to gain the benefits in the long term.

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