The Indian real estate has witnessed a roller-coaster ride in the past some time. Thus, both the realtors and the investors are now thinking twice before investing in the Indian property market. However, the NRI i.e. the non-resident Indian are now attracted towards the properties back in the country and this blog post elaborates the basic reasons behind the same.
1. Reforms and Government Policies
The entire nation is experiencing a new energy level since the Narendra Modi-led Union Government has taken oath in 2014 and the Indian real estate sector is not left untouched due to the same. Interestingly, the introduction of reforms such as the RERA Act, Benaami Property Act and Foreign Direct Investment [FDI] to bring money into the Indian economy has given the NRIs a smooth option to invest in the real estate sector of India. Apart from this, the non-resident Indians are also keen to put their hard-earned money back home because the new regulations and norms brought into effect since 2014 have made property purchase easy, transparent and safe.
2. Better Returns on Investment
Every investor expects handsome RoI i.e. the Return on Investment while putting money in any property and the demand for all types of properties such as residential, commercial, co-working and co-living is on a rise these days in India. Hence, the NRIs are keen to invest in all spheres of the real estate across the country as they know that the annual rental income is way better than what was used to be earned years ago.
Also Read : Top Affordable localities for NRIs to Invest In
3. Developing Infrastructure
Another reason that the NRIs are keen to invest in the Indian real estate sector is the fast-paced development of infrastructure and economy. Today, the proposals to connect different cities across the length and breadth of the country have opened various business and professionals opportunities and thus the young professionals are willing to relocate. For example, the proposed Dwarka-Gurugram expressway, FNG expressway, Delhi-Meerut expressway, Yamuna expressway and more makes commutation to the entire Delhi-NCR region congestion and hassle-free. Not only this, but those living in tier II cities close to the major working hubs like Noida, Gurugram and other southern cities prefer to work at the distant location due to easy connectivity. Thus the non-resident Indians eyes property investment here to yield good income.
4. Easy Loan Approval
The NRIs are keen to make real estate investment in India because they are now eligible to apply and avail loan like any other regular Indian. Apart from this, the Government now also offers tax rebates to the non-resident Indians and this is an add-on benefit for both as the NRIs can own property in India and the foreign current is also mooted into the Indian economy through the transparent real estate transaction. The NRIs can claim tax benefits under Section 24 and Section 80C of the Income Tax Act.
The centralized process to evaluate property titles and funds availability has made property purchase for NRIs in India easier by manifolds. Thus, a large number of foreign investors are taking interest in the Indian real estate sector.