The Indian real estate sector has emerged as a promising investment avenue for Non-Resident Indians (NRIs). With a growing economy, favorable government policies, and a stable property market, NRIs have found a golden opportunity to invest in the Indian Real estate sector. In this blog post, we will explore why NRIs should consider investing in Indian properties and the benefits they can reap from such investments.
Investing in Indian real estate offers several advantages for Non-Resident Indians (NRIs). Following are some of the key benefits:
- Capital Appreciation: The real estate market has witnessed steady growth over the years, offering significant potential for capital appreciation. NRIs can take advantage of rising property prices, especially in rapidly developing cities and emerging real estate hubs. The prices skyrocket by a few percentages every 6 months in the present scenario, making it in the interest of investors. This appreciation can generate substantial returns on investment over the long term.
- Rental Income: Indian real estate presents an opportunity for NRIs to earn a steady rental income. With the growing demand for 2 & 3 BHK apartments and commercial properties, renting out properties can provide a consistent cash flow. Yearly rental amount increases by 5 to 10% can also have a cascading effect on the capital influx of the entire transaction. Rental yields in India are often higher compared to other countries, making it an attractive option for NRIs seeking passive income.
- Increasing Property Market: The property market in India is the most lucrative, where the investment is nearly doubled in about 5 years, and there’s no turning back. This is the hot cake that NRI investors wish to capitalize upon. Also, making their existence stronger with the roots of their origin – such investments have a mammoth takeaway regarding returns and roots.
- Diversification: Investing in Indian real estate allows NRIs to diversify their investment portfolio. NRIs can reduce their risk exposure by allocating funds to different asset classes, such as stocks, bonds, and real estate. Real estate serves as a tangible asset that can act as a hedge against market volatility, providing stability and diversification to their overall financial strategy.
- Favorable Government Policies: The Indian government has implemented various policies to encourage NRI investment in real estate. NRIs enjoy the same rights as resident Indians when it comes to property ownership, allowing them to invest in both residential and commercial properties without any restrictions. These policies provide a favorable investment environment, ensuring transparency and protecting the interests of NRIs.
- Emotional Connection and Future Planning: Many NRIs have an emotional connection to their homeland and wish to maintain ties. Investing in Indian real estate allows them to reconnect with their roots and have a physical asset in the country. NRIs can also plan for their future, such as retirement or a potential return to India, by investing in properties that can serve as a residence or a source of income.
- Professional Property Management: Several real estate developers and property management companies in India offer professional services to manage and maintain properties on behalf of NRIs. This relieves them of the burden of day-to-day property management, including finding tenants, rent collection, property maintenance, and legal compliance. This has proven to be a game changer for investors to own a property in India and yet, macro manage it through a management agent.
Therefore, NRI investment in Indian real estate offers the potential for capital appreciation, rental income, diversification, favorable government policies, emotional connection, and professional property management. NRIs can leverage these advantages to build a strong investment portfolio and benefit from the growing Indian real estate sector. Moreover, many builders have been bestowed with great trust for investors to park their funds – increasing the confidence-building measure on the Real estate scenario.