With more options to invest in and with the Government of India’s Make in India initiative which calls for greater indigenization of industries, the real estate market has made way for Non-Resident Indian (NRI) investors.
By 2022, NRI investments in the country’s real estate sector are anticipated to reach 30-35 percent of their aggregate remittances. As per a report of the World Bank in 2018, India reported $80 billion in remittances, which had $13 billion investments in the real estate sector. This scenario is assumed because of the fact that India’s real estate looks captivating for Indians as well as NRI investors as the residential, commercial, and institutional market is expected to grow in the future. As the standard of living is improving, the prevailing need for malls, complexes, cinema halls, commercial buildings, office co-working spaces, and office spaces are increasing simultaneously. In the last few years, NRIs have invested in residential projects majorly, but now with changing trends, categories have opened up for them in other sectors too.
Another thing that gives NRIs incentive to enter the Indian market is the fact that now the government has introduced total transparency in the sector with a new set of laws and legislation with The Real Estate (Regulation & Development) Act of 2016 [commonly known as RERA] and Goods and Service Tax (GST). This act not only promises transparency but also ensures the security of investors. With these acts, each project of residential, commercial, and institutional has to compulsorily be registered with the government first. Further, a definite schedule of delivery is set, failing which the developer would be made liable to punishments. This was unlike yesteryears when the Indian real estate market was perceived as a sloppy investment because of zero clarity and transparency and putting money in real estate was seen as a risky thing.
Other than these reasons, the other two reasons make it a perfect fit for anyone and NRIs to invest in India’s real estate sector. In the last few years, the property rate has been slipping down by almost 10-15 percent in many hub cities. Secondly, depreciated Rupee has boosted their buying capacity and capability which promises additional 10-15 percent profits. These bonuses give them an average edge of 25 percent on bookings, i.e., right at the onset of their entry into the market. For NRI, home is where the heart and lineage are. For them, their country is the idealist world that calls them, and hence they always dream of returning back to their homelands someday. Country alludes to many things for them, it’s a nest of their parent’s care, love, comfort, security, and belongingness. Hence, with transparent laws and better investment options available in the real estate of India spread across many cities of the country, they can plan their investments right.
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