Why should NRIs Continue to Invest in Indian Real Estate?

NRIs around the world find the Indian real estate sector ideal for investment. In terms of locations, configurations, and property types, there’s no dearth of options. It’s no wonder that NRIs are deeply interested to purchase residential properties in India.

Here are some of the reasons explaining how real estate investment in India would benefit NRIs even in the coming years.

1. Rupee value is falling

With the Indian rupee falling fast against the dollar, the NRI community can capitalize on this strategic advantage. Recently, the rupee hit INR 75 against the dollar, which is its all-time low. Converting their money into Indian investments can be more profitable. In the coming months, if the rupee further drops, NRIs would enjoy better purchasing power.

1. Growing market

The Indian economy encountered severe hardships and challenges amidst the pandemic. Now, with the restrictions being lifted, the country has got a resurgent economy. Besides, the real estate sector is witnessing the pent-up demand. In the coming years, the sector is likely to go through a strong growth.

Naturally, property prices would be on the rise, and the ROI for NRI investors would be high. Besides, they have the option to tap fractional ownership of land, commercial real estate, co-working spaces, and warehouses.

1. Lower interest in other areas

Traditional investors prefer going for popular investment tools like equity, gold, and fixed deposit. However, they need to consider the market volatility. This exposes them to greater loss in the long term. Besides, the rate of interest in traditional investment instruments has been reduced. For instance, fixed deposits can yield an interest only around 4% to 5% a year. This is simply equal to the inflation rate, which ultimately gives lower returns. However, the real estate sector continues to deliver promises to the investors.

Therefore, NRIs have the option of tapping the lucrative Indian real estate market in the coming years. This explains why they should go for the investment.

      4.   Simplified Tax Regime

As India continues to be among one of the foremost countries to receive foreign currency from abroad, a simple tax regime also is a motivating factor for NRIs to park their surplus money in India. Additionally, NRIs also get an indexation benefit for properties held in India. For instance, immovable properties held for more than 24 months are treated as a long-term capital asset and obtain an indexation benefit with simplified taxation at 20%.

The NRI investor is also allowed to transfer the money directly to the sellers’ account while buying a property in India. With a defined documents checklist, NRIs can invest in the Indian real estate market in a hassle-free manner.