It’s not merely about investing in India for the NRIs but to invest in the cities where they were brought up. It has been noticed over the years that around 78% of the Non-Resident Indians are investing in buying properties in their hometown and surprisingly, not the metro cities despite the high return on investment in the metro cities.
Not every NRI is a professional investor and money or ROI (Return on Investment) is not his or her agenda. For some of them, they find a foreign country to fulfilling the monetary requisites and hence, settling down back in India in their hometown is all they require if they ever have to return.
Here are three reasons why NRIs invest in Indian real estate market and prefer to invest in hometown –
- Safety & Security
NRIs cannot travel down to India every second month to keep an eye on a property. Thus, they prefer to invest in the city where they have their family, relatives or acquaintances living for a long time. Hence, they buy property in order to earn long-term benefits through rental income. As per the law of India, NRIs can transfer the power of attorney to anybody in India – family, friends or relatives living local– to keep the property under surveillance and maintain the same.
- Post Retirement Requirement
Where some NRIs invest for business purpose and earn monthly income, some look forward to invest for the sake of future. After retirement, an NRI can return to their roots to which they had been connected emotionally. Hence, owning home in hometown is a safe plan for the NRIs. The, 90% of the retired NRIs are found to settle down back in India, in the same city and place where they were born.
- Personal Satisfaction
Over 70% of the Indians prefer not to get employed in a city offering lesser paying job – be it their hometown. They move to urban cities or even India to get the high salary paying jobs. However, they still find satisfaction and mental peace to come back home in their home city to settle down.
The NRIs preferred destinations in India for property investment are Ahmedabad, Bangalore, Kochi, Coimbatore, Chennai, Hyderabad, Thiruvananthapuram, Chandigarh, Pune, and Mumbai.