Analyzing the NRI investment pattern in Indian real estate

 

India has always been an attractive destination for NRI investors, mainly in the real estate sector. According to the industry experts, the investors from Gulf countries have a considerably higher level of interest in the properties in India as compared to other countries. In the recent years, there has been an unexpected rise in the demand from NRIs of the Middle East. Apart from the GCC countries, the NRI segment from Australia, Malaysia, USA, and UK have also shown significant amount of interest in the real estate sector.

In comparison to the last year performance, the investments have gone up by approx. 50% and developers could see more interest from NRI buyers & with the rupee depreciation developers hope to see more interest from NRI investors.
Looking at the property price trend, it has been accelerating at about 40 per cent annually and this trend is unlikely to fall in the real estate future.

There are 3 particular reasons for NRIs to invest in India:

  1. Rupee depreciation
  2. Appreciation on investment in future
  3. Attractive schemes offered to NRIs

The top metros Mumbai, Gurgaon, Bangalore, and Chennai are the areas where the NRIs are keen to invest because of the real estate boom in these metros. Moreover, some of the renowned developers like Godrej, Antriksh, Shapoorji Pallonji are focusing on special structured deals exclusively for NRIs. Therefore, these metros are called as NRI investment driven locations.

Apart from these cities, NRIs who are looking for a second home, are finding suburbs of Mumbai, Pune, NCR (especially Noida), Kochi, Jaipur very apt this purpose.

Apart from this, the India Laws have helped in boosting the NRI investments in India. With the simpler laws, attractive government schemes under the guidance of FEMA (Foreign Exchange Management Act) and RBI regulations, NRI are very much assured as well as optimistic about these government schemes.

One such example of the rule is; according to RBI, anyone who belong to Indian origin and has an Indian passport can invest in the real estate of India i.e.; both residential and commercial

For NRIs, real estate is such a lucrative sector which will fetch them good results in the long run with minimal risk factor attached to it.