Is it the right time for NRIs to invest in the Indian realty sector?

Many experts are betting nowadays on the increasing shift in the Indian real estate industry. It’s not only the Indian experts but also the NRIs who are keeping an eye on this sector. 

Slowly and steadily after the global pandemic, the Indian realty sector is getting back in the pink of health. It is a clear indication that the good times are here when the NRIs can start their investment plans in the Indian real estate sector.

Factors due to which NRIs predominantly invest in the Indian markets include their emotional connection with their home country and their retirement plans. The Indian realty sector has good future prospects for the NRIs because NRIs live in countries like the USA, UK, Dubai, etc. and they earn in their respective country’s currencies which is comparatively trading stronger than the Indian rupee. So it gives them the advantage to invest more in the Indian real estate, adding to which they do not have to go through any major legal formalities as the ease of FDI norms and the focus of government for this sector adds up to more confidence of an NRI investor. This is one of the biggest advantages for the NRIs to invest in India.

It has been observed that an investment of long-term duration in the Indian sector gives rich dividends. Usually, the main regions of investment for NRIs are Karnataka, Telangana, Maharashtra, Delhi & NCR, and other metro locations. Northern parts of India currently are the popular investment destination as it offers good connectivity through national highways and has a maximum number of commercial spaces that attract a lot of NRIs.

Investing in real estate is a beneficial choice for the NRIs, however, the most important step here is choosing a good real estate project. The Indian real estate sector offers a bunch of opportunities to invest in hospitality, residential, commercial, or retail areas. It is expected that in the coming years this sector is going to boost up by at least 30 per cent which again becomes a great opportunity for the NRIs to benefit from their investments.

There is an investment checklist that the investors should check before starting an investment:

  1. All of the transactions should be done in INR through banking channels or their existing NRI accounts.
  2. The NRIs should have a valid Indian passport so that they do not need to go through any prior approval procedures.
  3. NRIs are allowed to buy any residential or commercial properties in India but are not allowed to purchase any agricultural lands or farmhouses.
  4. They are also eligible to avail loans to buy property in India, whose maximum limit is generally 80% of the value of the property.
  5. With the new FDI policy, the NRIs can invest in real estate through Indian companies.

Even though we have several advantages, the most important role here is played by the developers to attract buyers from outside India. For this, need to set up offshore offices and organize events to push up their sales. Developers even offer flexible payment methods and several discount schemes. And such property sellers have well-versed with the local rules and regulations and a strong database of the potential NRIs looking for a property purchase. 

With the help of the digital transition of the real estate sector, it allows the buyers to look into their future properties with 3D viewing options, see the design in an augmented and virtual reality concept. Because it becomes a hectic task for an NRI to visit India on a regular basis and check on properties, this active transformation with digital technologies has bridged the gap and helped to expand the list of potential leads for sellers and property builders.

The demand for semi-luxury and luxury homes is at its peak today, and the demand for property in metro cities is garnering a really good market. And considering the current market scenario, investing in the Indian market can potentially generate better revenue in the future. So to the NRIs who are still waiting for the right time to invest, check on the price trends and upcoming properties because now is the time to start as it can’t get any better.

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