The real estate market is a stable and secure investment option considering its tangible nature and value appreciation over time. While Indians have always had strong sentiments for homeownership, NRIs (Non-Resident Indians) are flocking to the Indian real estate market for a particular reason. Here is why.
The dramatic decline in the value of the Indian rupee against the US dollar caused by high global interest rates and inflation has offered a unique opportunity to the NRIs in times of volatility. With the rupee depreciation, they are now better placed than resident Indians in the real estate market. But how a falling rupee is making NRI investment in India’s post-pandemic real estate market beneficial? Find out more.
NRI Investment in Indian Real Estate
Real estate has been a popular investment avenue for Indian ex-pats. But rupee depreciation has offered more value to the NRI capital, thus increasing their purchasing powers and motivating them to invest more in Indian properties. Hence more NRIs are considering real estate investment to be the best bet essentially after the COVID-19 pandemic.
According to IBEF (India Brand Equity Foundation) Indian real estate industry is expected to reach a whopping US$ 1 trillion market size by 2030 and will account for 18-20% of India’s GDP. Moreover, the real estate sector will attract more short-term and long-term NRI investments shortly.
But why are NRIs choosing the real estate market over other investment options?
Investments in gold, commodities, and stocks have become less lucrative as the rupee falls due to inflation and high global interest rates. While global financial markets are still trying to recover after the pandemic, the Indian real estate sector is witnessing robust growth after sluggishness in the past decade. As per a report, India is now among the list of top ten price-appreciating housing sectors globally, thus offering a great opportunity for the NRIs in real estate investment.
Hence, by adding real estate investment to their portfolios, NRIs can ensure a stable and safe investment. This is why Indian migrants in countries like United Arab Emirates, Australia, the United Kingdom, Saudi Arabia, and Singapore are investing in the Indian real estate market.
Real Estate Investment Benefits
NRIs buying property in India can get the following benefits:
- Real estate investment ensures the stability of returns as property value appreciates over time.
- Considering the tangible nature of the real estate sector, one can ensure the security of the investment.
- Real estate investments are less volatile as compared to some other investment options.
Role of Technology
While buying a property, it is crucial to visit the place to ensure all requirements are met. However, it may not be possible for NRIs to visit the properties they intend to buy. Here technology plays an essential role in the following ways:
- Proptech platforms are making the process seamless by helping buyers with research, sale, documentation, etc.
- Virtual and augmented reality is helping non-residents view the property from their homes, thus helping them make the right investment choice.
- Online launches through video conferences have enabled builders to communicate with potential buyers sitting abroad.
To make informed decisions, one can also map information such as regional process, project status, RERA (Real Estate Regulatory Authority) certification, and developer history. NRIs can also hire experts to avoid multiple-party involvement and make the process hassle-free.
Popular Locations of Interest
Currently, non-residents are interested in business hubs in prominent cities such as Bengaluru, Delhi NCR, Mumbai, Chennai, and Hyderabad. Investments in physical workspaces are allowing NRIs to secure returns through rental incomes.
Further, as property investments in India are becoming popular among NRIs, there is a growing trend to invest in vacation homes. Most NRIs are investing in resort suites at famous vacation destinations. It gives a chance to use the resort as a vacation home when required or rent it out to create a secondary source of income. Investing in vacation homes is also allowing these ex-pats to become free from maintenance of the property.
Final words
The present favorable conditions for NRIs have made real estate investment a lucrative option. While other investment options are witnessing turbulence due to various factors, rupee depreciation is opening new doors in the real estate sector for Indians living and working abroad.
Moreover, technological interventions are allowing Indian migrants to make the right decisions while viewing the properties virtually. Another factor behind the growing real estate sector is proper regulation by RERA. It is creating a secure environment for investors, thus attracting them to the Indian market.
Disclaimer- This article is based on the information publicly available for general use as well as reference links mentioned herein. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein..
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