As per United Nations’ 2017 International Migration Report, there is a huge population shift from India to Emirates. Around 3.3 million people in the United Arab Emirates are of Indian-origin. With the presence of such big figure of Indian populaces in the Emirates, Gulf-based NRIs’ investment in the Indian realty i.e., their home-country, is within the realms of possibility.
Considering the business terms between the two countries, India holds the third largest position as an active investor in the UAE. Industries like L&T, Pioneer Cement, and others are finding well opportunities for the business in the country.
Here are few factors why Gulf-based NRIs are finding Indian real estate an attractive place for investment –
Builders & Developers’ Presence in UAE
Real estate builders and developers are leaving no coin unturned in order to remain active on global real estate investment platform under which they are launching their projects in Gulf countries like Dubai, Abu Dhabi, and Sharjah. Not to mention, the developers serving the Non-Indian countries are accustomed to the preferences of the Gulf-based NRIs populace.
Google apps and virtual realty-like technologies have not merely filled the geographical gap between the two countries but have also been helpful in educating the NRIs in Gulf countries about market dynamics. With the digital presence, developers and builders have made it easy for the investors to search the right property at the desired location and make bookings and payment through online channels.
The technologies have largely helped the investors in saving their time, money and energy for arranging a trip to India for paperwork, payment, and post-purchase inspections. Deals made online are as clear as crystals.
Depreciating Rupee Value
Depreciating value of Rupee also thrusts the NRIs’ investment plan. Today it stands at INR 17.42 against UAE Dirham and INR 64.02 against US dollar. Such depreciation brings a psychological boost to the Non-Resident Indians as well as the real estate developers. With these values of the rupee and the stagnant market condition in the country, Gulf-based NRIs are most likely to benefit from the attractive options in the real estate market.
Government of India
NRIs’ investment-friendly government of PM Narendra Modi is one of the most important factors that is supporting the money flow in India in form of Pro-investment. The announcement of demonetization had jolted the Indian real estate market for some time and had left the NRIs perplex with their investment plans. The launch of RERA (Real Estate Regulation Act) brought relief to the consequences and improved the transparency in investment in Indian realty.
Affordable Housing Scheme,” as an infrastructure, is yet another move by the Indian government that has pulled the attention of NRIs finding it a safe place for investment.
Preferred Destinations for Investment
Tier 1 cities are placed in the first place due to high demand for properties and fast-growing attributes of these cities. This includes Delhi, Mumbai, Bengaluru, Pune, Kolkata, Hyderabad, Ahmedabad, and Chennai.
NRIs have been investing in India in more than just one asset including mutual funds, fixed deposits, bonds, and equities. Indian realty, contrary to the others, is considered to be the easiest and safest investment choice.