What’s in store for NRI investors in 2021?

For any property investor, returns on investment (RoI) is a factor of entry price point vis-à-vis appreciation potential, which in the Indian real estate market at the beginning of 2021, is a positive factor. Going ahead, it promises to get even better, amid indications that the Indian economy will recover from the pandemic induced slowdown much faster than was estimated, making it the ideal location to invest in. Real estate remains among the preferred investment choices in the Indian economy, and expatriate Indians have, through the second half calendar year 2020, continued investing in Indian property. This trend which has grown month on month through gained momentum during the last quarter of calendar year 2020, and the momentum will continue through 2021.

The Global Indian who earns in foreign currencies gains an additional advantage given the exchange rate of US Dollar vis-à-vis the Indian Rupee, this will continue to remain an advantage through 2021.  Secondly, for an industry recovering from Tsunamis of reforms as also the pandemic-induced lockdowns, Indian real estate developers have been offering investor-friendly opportunities though the stages of ‘Mission Unlock’ in the Indian economy. The expatriate Indian traditionally, has enjoyed a ‘special status’ for Indian real estate investment; in a world where humankind co-exists with Corona, even more so.

The biggest advantage for an expatriate Indian investing in Indian real estate is the safe, secure and transparent transaction which the real estate regulatory laws (RERA) ensure; plus the low interest rates for those who opt for a home loan to finance the investment. Capital appreciation as also rental income are the twin advantages for expatriate Indians investing in Indian property, and these will continue, making  real estate a lucrative investment option through 2021. This also brings in the aspect of due diligence to ensure that the expatriate Indian invests in Indian property that offers maximum potential for growth, within the shortest tenure. Ideally, this segment tends to invest with branded developers who have a proven track record of time-bound delivery, the same would be the right approach through 2021.

Finally, the knowledge takeaway from the pandemic: for the global Indian, a ‘home, back home’ has enhanced importance in a scenario where the safest place to be during a pandemic is one’s own home. What is an investment in normal times will be a ‘safe haven’ when globally, times turn challenging. This will be the biggest motivator through 2021, for expatriate Indian investments in Indian real estate.