India's real estate market has become a preferred destination for investment among non-resident Indians (NRIs) due to the Indian government's favourable policies aimed at attracting foreign investment and the country's stable economic growth. The Indian real estate sector offers a range of investment opportunities, with attractive returns on investment, leading to a constant rise in investment from the NRIs.
The real estate market of the country presents several attractive investment opportunities for the NRIs due to several factors that can offer high returns on their investment. This coupled with growing demand for residential and commercial spaces have played a significant role in driving this trend.
Mr. Ashish Bhutani, CEO of the Bhutani Group said, “India's promising real estate market presents an exciting opportunity for the NRIs looking to diversify their investment portfolio. With the market set to continue its upward trajectory, now could be an excellent time even for the fence-sitters to invest. They should not miss this opportunity and take advantage of its potential for high capital appreciation.”
One factor contributing to the increase in NRI’s investment is the government's relaxation of foreign investment norms. It has allowed 100% foreign direct investment (FDI) in finished real estate projects for the operation of commercial centres, malls, townships, under the automatic route. Additionally, the easing of regulations around the repatriation of funds makes it even easier for the NRIs to invest in India's real estate market. All these measures have created a conducive environment for the NRI investors. The attractiveness of the sector as an asset class has already increased manifold. The favourable exchange rate is also making investment in India's real estate market more lucrative for the NRIs.
The growing Indian economy has already attracted investment, leading to an upsurge in demand for real estate and an accompanying boost in property prices. However, for The NRIs, the property prices in India are relatively lower due to the high value of the US dollar, which translates into significant investment opportunities in the market. Additionally, the rental yield in India is very high, providing an attractive opportunity for the NRIs to earn passive income.
A plethora of investment options are available for them in India. The NRIs can invest in various types of real estate assets, such as residential properties, commercial properties, and in real estate investment trusts (REITs). REITs are a novel investment option in India, allowing investors to invest in income-generating real estate assets.
Investing in commercial properties in India can provide the NRIs high rental yields compared to residential properties. As India's economy is growing fast, the demand for commercial properties has also increased significantly, resulting in capital appreciation for investors.
Meanwhile, the government has taken measures to facilitate foreign investment in the real estate sector by liberalizing policies and simplifying procedures for the NRIs. The introduction of the Real Estate Regulation and Development Act (RERA) and the Goods and Services Tax (GST) has enhanced transparency and accountability of real estate developers and streamlined the taxation system for the sector, presenting a risk-free and win-win opportunity for the NRIs.