Why it’s the perfect time to invest in real estate in India as an NRI

The last few years have not been kind to the Indian Rupee. Factors as wide-ranging as the COVID-19 outbreak, an uncertain global geopolitical landscape, and a worldwide increasing interest rates and high inflation have led to a dramatic fall in the currency’s valuation against the US dollar. But, there is an opportunity in every crisis – and NRI investors have been quick to spot one in India’s real estate sector. According to data, between January and June 2022, search traffic from NRI customers looking to purchase a property in India increased by 117.7% over the corresponding period in 2020. These investors are capitalising on a unique set of circumstances – one that you, as an NRI, should also be looking to take advantage of. But this alone does not explain all the factors behind this surge of investor interest.

What Made the NRI Real estate Investment Fall Back in India?

Several reasons have lured NRIs to invest in a lucrative avenue of the Indian real estate market.

• Strict regulatory measures
• A significant drop in the rates of property
• Increased transparency in procedures
• Great consolidation in the sector
• The recent depreciation in the Indian Rupee

In addition to the above reasons, a paradigm shift in the economy during the last few years is a growth booster for India. The Indian economy as of today is above 2 trillion dollars.

Why Should NRI Invest in Real Estate in India?

Robust Economy:
India has withstood the global financial crisis by having an economy with quality, resilience, and transparency and is supported by a strong banking sector.

Eminent Markets:
Indian Stock Exchange is one of the oldest and biggest stock exchanges in the world. It is efficient, lower cost, and has a modern environment with returns on investment of over 15% per annum for the last decade.

Diversity in Investors:
Due to the strong service sector, there has been a wide range of industries available for investment. Investors are also learning to gain enough understanding to invest in a knowledge-based industry.

Demographic dividend:
India being the youngest country, almost 64% of the total Indian population falls under the working-age group. Thereby there is a lot of scope and potential for productivity and innovation, thus enhancing economic growth.

The Rapid Growth of the Market:
The Indian market is growing fast, and Indian investors are now shifting their focus to stock-based tools against traditional investments. The booming market and stock prices have made it a good time to invest in India.

Investor Friendly Market:
With the Indian government becoming friendlier towards foreign investors and the RBI and SEBI formulating several policies and guidelines for encouraging FDI or Foreign Direct Investments, NRIs are driving their investment focus towards India.