NRIs can redeem good investment yield in the Indian Residential Market

Indians are traditionally always connected to their roots, and this draws them towards investing in the Indian property market. Regardless of where they work or live, the affinity towards their homeland is always fostered in their heart emotionally and financially. The Indian real estate market has weathered the economic storms better compared to other economies, as its revival has been noteworthy. The property market is poised to witness positive growth with sustainable home buying demand for either end-user or rental income purposes. Thus, Non-Indian Residents have always found real estate investors back in their native land worthwhile and rewarding.

NRI Real estate investment is pegged to grow by nearly 12% as per the media research report. Further, a rise in property prices by nearly 10-15% in the wake of global commodity inflation is inevitable across the markets. This will lead to a hike in rental rates and a good investment instrument for NRI investors. There are many driving forces fueling the growth of the NRI investment gamut in Indian residential real estate markets as follows-

1.       Steady Income – NRI home buying in India is simplified in process and this ease of investment attracts a huge pool of investors to the rental property market. NRI buys an ownership home in the native land and further rents it for a passive steady income.  Rental rates are observed to escalate as demand for rental homes is resumed with the reopening of all economic activities, back work, and back-to-campus scenarios. This will soon convert into a better yield proposition

2.      Transparency – Enacting of RERA Act in 2016 was a game-changer. It brought in the much-needed transparency, accountability, and financial discipline which empowered NRI investors. This confidence building has improved the investor’s sentiments and further sees a rise in investment influx. Also, the government and apex regulatory bodies encourage NRI to invest in India by charting out a clear mandate and ease of the process.

3.      Currency Depreciation – Decadal low falling currency value opened the pathway for NRI investors to rejig their investment portfolio and park their funds in Indian residential real assets. Weak Rupee has been the significant reason to pull NRIs investment, as they will reap the appreciation of increased value with Rupee strengthening.

4.      Ease of Tax compliance– The Income Tax Act of India has a simple tax compliance mechanism for the NRI. It also allows deductions under sections 80 ITA and 80C.  It also allows NRIs to transfer money to the NRO account to make money transfer at ease.

5.      Stability & Security in Crisis– Residential real estate assets offer stability, shelter, and safety during volatile scenarios. At any given point, returning to the homeland will offer you your own safe nest to reside in. It is also considered a good retirement investment plan with a steady source of income.

Rental housing is picking up steam as the career progressive workforce is migrating back to urban centers in lieu of great work opportunities and standard of living. The customer’s preferences are skewed towards quality and end-to-end professional house upkeep services providing rental accommodations to experience the ease of living. Rental housing in well-established and connected locations will garner higher returns on the verge of rising demand. Gated communities offered by branded developers cater to the taste of evolved customer segments that choose holistic living, convenience in proximity, wellness-oriented amenities in the backend, like-minded community fabric, and upmarket social infrastructures like prominent high-street retail, entertainment and shopping arena, recreation and fine dining, healthcare and emergency service in the vicinity.

Rental market dynamics are evolving as residential micro-markets shape up the real estate landscape. Thus, it is the right time for NRI homebuyers to experience digital homebuying with developers of well reputed and proven track records to offer the right investment product. The market dynamics are subjected to the global political upheaval, and it is an appropriate time for the NRI investors to rejig their investment portfolio and reinvest in the India property market to redeem the long run benefits.