Indian Real Estate: Once Again Attractive For NRIs

Indian Real Estate: Once Again Attractive For NRIs

Over the past few decades, the urge to ensure a better standard of living for themselves and their families back home has led countless Indians to migrate to countries offering attractive work-pay equations. This income-generating objective is the highest common factor – and though NRIs’ ties with their country of birth sometimes erode to a certain extent, the willingness to turn a decent profit on investments back home does not.

For a protracted period, investments in India did not offer good returns, causing NRIs to choose to invest in the countries they migrated to – or anywhere else where the markets were attractive. However, with the resurgence of the Indian economy after the arrival of a stable government intent on boosting business in the country, things are changing. Today, the Indian realty market is once again a prime focus area for NRI investors.

The Indian realty sector as a whole – namely, across the residential, retail, hospitality and commercial verticals – is slated to grow at 30% over the next decade, attaining a market size of around USD 180 billion by 2020. However, the investment opportunity lies less in the Indian real estate sector’s speed of growth than in its overall dynamism. As such, it has been time and again vouchsafed that long-term investments into Indian realty pay off very well indeed as long as sound investment decisions have been taken.

Advantage NRI

NRIs today are keenly aware that Indian real estate once again presents them with a very hot investment proposition. That said, they do have their own leanings and predilections when it comes to where to invest. Generally, the NRI community prefers to invest in their states of origin – primarily Kerala, Karnataka, Tamil Nadu, Maharashtra and Delhi NCR. However, since residential inventory has piled up in the two major cities of Delhi (the political capital) and Mumbai (the financial capital), investors are currently very well placed to find good bargains in these markets, as most developers there are offering discounts and attractive financial schemes.

The advantage that UAE-based NRIs (by far the largest contingent) have is that they earn in Gulf currencies that have traded strongly against the Indian National Rupee. This factor off-sets a part of the house cost already. However, the rupee is bound to strengthen further, and the advantageous difference between the currencies will reduce as the Indian economy grows under a stable government at the centre

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