Indian real estate segment has always been an all-time favorite investment destination for NRIs due to favorable market conditions and stability it offers to its investors. With recent investor-friendly measures including RERA and demonetization, investors have turns more optimistic as these have brought greater transparency as well as government controls over the market.
A recent study exposed that NRI aged between 18 and 35 in UAE accounts for 45% in the Indian real estate investment. Reversing the trends that elders believe in saving and investments, this report clearly projects that young NRIs are quite keen to invest in Indian Realty sector after anticipating its great future prospects.
Reasons why NRI are getting attracted to Indian Property Market
With the vision to root to the country, Young NRIs are keen to invest in the Indian Properties. It reflects that they are keen to settle in India in their near future and hence making future provisions to buy property in India.
Regular rental incomes can be reaped effectively by investing in the Indian Realty Markets. Just by letting out their properties, NRI investors are buying properties in India and making adequate provisions for their rental income. With growing population, the demand for rental accommodation has been increased hence it is easy for NRIs to let out their property in India.
Over the last decade, the property market in India has booked a phenomenal growth. A report suggests that it is expected to touch $180 billion by 2020 and thus giving all the reasons to young NRI with its astonishing growth.
A major factor driving a large number of Young NRIs is the affordability. As the denomination value of Indian currency is lower than the foreign currency, the property is India turns cheap for them. Even the developers’ nowadays focus on developing NRI-centric projects which are quite affordable to invest as well.
Government is also formulating various procedures and policies that help in maximizing the investments from NRIs. With such efforts from the government of India, even NRIs are also keen to invest more in Indian Realty segment. As more and more transparency has been introduced by the government by implementing Real Estate Regulatory Authority (RERA) Bill and Benami Transaction Act, the NRIs are keen to invest in the Indian Realty segment.
Market estimates suggest that out of total residential property sales in India, around 10% is contributed by NRI. Keeping this factor in mind, even the builders are coming up with more NRI-centric projects. The trend suggests that the NRIs with double income in the age group of 18-35 are investing more in the properties at Noida, Gurgaon, and Bangalore as these investments have a high potential for capital appreciation in near future.
Over the last decade, the real estate in India has observed a phenomenal growth making it a lucrative avenue for investment not just for domestic investors but for NRIs too. The current market scenario is totally in favor of buyers and thus NRIs are investing real estate projects in India to achieve great capital appreciation.