Well, if you are a Europe-based NRI then the average rate of properties in India for you will be average 10 percent lesser than the earlier rates. For instance, if you are buying a property of Rs 75 lakh than the property for a European NRI will be Rs 70 lakh, sounds good? Right! So, in short this comes out to be at a lesser average rate of 8 to 10 percent which is huge when you are buying a property. But we all have a question that is coming in our mind at this point of time: that why only Europeans?
The answer is very simple that there is nothing specific about it. Hah, the foreign exchange rate of Euro against the Rupee has gone up. This is as simple as that. Well, the Euro has gone up from Rs 70 to Rs 76 in the past six months.
The European NRIs can make use of this exchange rate by buying properties in India which are actually costing less than 8 to 10 percent to them given this factor.
Is RERA the reason behind European Investment in India?
One important reason behind investing in India is that the real estate market here is on a fast track and all because of the Real Estate Regulatory Act (RERA) that aims to make the real estate sector an organized market in the Country. The real estate sector will become more or less like the financial or insurance sectors which are completely organized.
This is a very good time for NRI’s to invest in India as there are ample of opportunities due to regulatory scenario leading to limited supply of properties.
The real estate market of India is no more an over-supply market. There are limited number of projects that will provide residential and commercial properties to the owners without any discrepancies.
But how this is going to help the NRI’s?
The commitment shown by the Government and the stringent regulations from the RERA, will not allow any new project to launch without their permission. The Government will not allow any non-serious players or builders to enter the property market. Only organized, long-term players can enter the real estate market in India. This will result in qualitative residential properties in the market.
This will also help the property buyers to make returns out of their investments in good time-frame whether for that matter one is a resident or an NRI, both will enjoy the perks.
If we look at the past, there are so many new projects and buildings which are under construction that affects the real estate market like anything. The oversupply of the residential properties in the market affects the demand of the ready to move in properties and resale of the flats. But after the strict action of the government today these factors are no more visible.
Now, the real estate market in India has a substantial number of ready-to-move-in properties and availability of quality resale properties as well. What you require is to map your next step and take an action. And for the Europe-based NRIs, EUR-INR exchange rates are already on their side!