Shajai Jacob, CEO – GCC (Middle East) – ANAROCK Property Consultants
- NRI investments into Indian real estate are led Indian expatriates from UAE, USA, UK, and Canada
- Bengaluru, Mumbai, Pune, Hyderabad, Chennai and Delhi-NCR currently attract the lion’s share of NRI investments
- Equities score higher than real estate on capital appreciation, but residential property comes with the benefit of rental yield, relatively lower risk and considerable tax benefits
Riding on a wave of economic reforms, improving transparency and better governance, foreign investments in Indian real estate are set to scale new heights.
With laws now allowing 100% FDI (foreign direct investment) in construction development and REITs now in place for commercial real estate, the Indian real estate industry will see increasing investment infusions from NRIs (non-resident Indians).
According to a World Bank report, India received USD 79 billion in remittances in 2018 – with a sizeable portion going into real estate.
NRI investments into Indian real estate are led Indian expatriates from UAE, USA, UK, and Canada. In terms of Indian cities,
Shajai Jacob, CEO – GCC, ANAROCK Property Consultants
- Regulations for property acquisitions by NRIs
- Returns on investment in different real estate asset classes
- Documentation, home loans, tax implications compliances
- Best cities and micro-markets in which to invest
Whether the real estate market remains bullish or bearish, NRIs prefer a place back in India – not just for investment returns but also to remain rooted in their country of origin.
Previously, NRIs (like most other buyers and investors) had every reason to be leery of the Indian real estate market. Today, game-changing policies like RERA and GST have now boosted confidence and transparency and streamlined the property-buying process for NRIs.
This has begun fuelling new NRI investments into the Indian property market. The fact that the rupee value against dollar depreciated in 2018 was also a sound reason for NRIs to view Indian real estate more favourably.
And, of course, developers have been offering substantial freebies and even discounts, apart from interesting payment plans, to draw NRIs as well as domestic buyers to their projects.