Why Indian Real Estate Is The Best Investment Option For NRIs

Benefits Of Investing In Indian Real Estate For NRIs

As the new financial year kicks in, Investing in Indian Real Estate with the NRI diaspora at the forefront is poised for accelerated growth.

The Non Resident Indian (NRI) population, estimated to be over 12 million, has been growing rapidly over the past decades. Better social infrastructure, improved standard of living, and higher currency valuation in countries such as US, Europe, Middle East etc. are some of the points of attraction. After significant years of savings, NRIs invest back in India as they find real estate to be the safest and best choice for many reasons.

Benefits Of Investing In Indian Real Estate For NRIs

India a perfect destination for real estate investment!

Most Indians living abroad (NRIs, PIOs & OCIs) prefer to own one or more real estate properties back home, and constantly strive to get the best deal for the perfect house. If you are an NRI, and are on the lookout for affordable property, here is a helpful list to simplify the process for you!

We will try to answer this question with the following points:

Regulatory Act

If you have an Indian passport, you do not require any prior permission to make a property investment in India. The Reserve Bank of India has made the rules very simple to attract more foreign investment. Transactions in the real estate sector are governed by the rules under the Foreign Exchange Management Act (FEMA).

Price Benefits

India is one of the fastest growing economies in the South Asian region. With the development, the property rates are also catching up slowly. The initial price is not that much, making it a great investment set up.

This is further promoted by price benefits offered by the government. For NRIs under several schemes relating to FDI, which makes it easy for the investors to route to India than any of the neighboring countries.

Tax Benefits

Another blessing bestowed by government. Schemes is the exemption of taxes in various fashions. For example, NRIs are not required to pay taxes on the profit earned due to increment in property value for two consecutive years. NRIs also enjoy claims on home loans and their repayments.

Rent Benefits

A majority of NRIs who own real estate properties in India use it as their place of accommodation during their infrequent visits. These properties become a great mode of income via leasing. High profile properties generate a significantly profitable income in the form of rent even after deduction of TDS.

These were some of the factors attracting investments from NRIs in India. Now, the next question arises, where do these NRIs go to invest? What places are sitting in the most investment-friendly zones?

Let’s have a look!

Mumbai – City of dreams

The financial capital of the country is one of the prime spots for investment right now. Especially, the developing areas that promise relatively easy acquisition than other parts of Mumbai. Furthermore, the establishment of technology parks and rising corporate sector has boosted real estate business for NRIs seeking to invest here.

Mumbai’s counterpart Thane and Navi Mumbai, also have shown increasing employment opportunities which, in turn, are driving the demand for residential realty.

Thane finds inclusion in the smart cities list and enjoys excellent infrastructure. Its connectivity to central Mumbai is heartening. Average price per sq. ft in Thane East is Rs 11368 and Rs 11260 for Thane West.

Navi Mumbai, on the other hand, is touted to be a very well-planned city with exceedingly good transportation and the International Airport under construction will only serve to boost property prices upon completion. Average property prices can range from Rs 17659 per sq. ft. for high-end locations to Rs 3316 per sq. ft. for affordable locations.

Bangalore (Bengaluru) – Silicon Valley of India

Regarded as the ‘Silicon Valley of India’, Bangalore enjoys the reputation of being one of the best places to invest for NRIs. Mainly, due to the low property prices in the region and world class infrastructure. The city is a great place to live in and has shown a steady incline in growth rate as well.

Pune – Oxford of the East

Just like Mumbai, the rapid growth of IT companies in Pune is acting as a catalyst for land acquisitions by investors from all around the world. The demand of business centers in Vishrantwadi, Kharadi and Baner has kept Pune in the front league of investable places for India.

Conclusion

We believe that the prices have bottomed out and this is the right time to invest in the market, to gain substantial property price appreciation. Various factors that make real estate an attractive investment avenue are rupee weakening, prevailing low property prices, a reviving market, NRI friendly regulations and taxes, and a wide range of property options.

Now you know why India is the ultimate destination for Non-Residentially Indians in a profit-promoting scheme of things.

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