Property buying in India has always been looked upon as a marker of social status but for NRIs, it is mostly just another investment option. Of course, there are some who would like to return to the country one day and buy the best home possible for themselves and keep it ready, but such numbers are few. The real estate market has again become quite lucrative for the NRIs and here are some of the reasons for this happening in recent times.
1. The rupee had witnessed a major fall against the dollar in recent months and the NRIs have begun scouting for properties in India to make the most of it. This comes in the wake of the lull that had caused the Indian real estate market to slow down post demonetization and the implementation of the RERA. NRIs had also always been rather apprehensive about investing in the Indian market due to lack of transparency and safety issues.
2. The trend however, has been changing in recent times, and the RERA had influenced the real estate market for good. Many weaker aspects had been consolidated and the industry is shaping up in a positive way. Buyers have more rights now and can hold builders accountable for their slack. The weakening of the rupee against dollar had also made the investments in India lucrative at the same time and about 30% of NRIs are thinking of investing in Indian markets.
3. NRIs now also have the power to leverage their additional income by investing in properties here as prices have corrected over the past few years. Also, with the improvement of infrastructure of the Tier II and Tier III cities, these locations are also becoming preferred destinations of buying property. The prices here are still low compared to metro cities which further make the purchase cheaper but the property itself will have all the advantages and benefits.
4. Apart from residential properties, NRIs are also interested in investing in commercial properties because the return on investment from such properties is quite good with rents going up considerably in key locations. Commercial real estate in India is definitely on the rise. Commercial places cost more, but with the rupee becoming sluggish by the day, it has become advantageous for the investors for those earning in foreign currencies and spending it to buy property in India, which they can sell later at much higher prices. The rent form commercial properties are also a steady source of lifelong income.
5. The biggest draw for the NRIs is that the regulatory norms have brought in transparency and accountability on parts of real estate developers and gives greater security to NRI buyers. Such a thrust in property investment was last seen in 2012 and experts in the field are experiencing a déjà-vu as the property prices are now down by 10 to 15% and that has attracted a large number of NRI buyers to the market.
