The Indian property market is already turning the corner after many years of sluggish growth. Several markets are witnessing good business with interest of buyers increasing after the pandemic
In addition to domestic realty buyers, there has been a sizable increase in NRI investments in the country’s property market. This has given a further boost to the market overall. The Indian property market is already turning the corner after many years of sluggish growth. Several markets are witnessing good business with interest of buyers increasing after the pandemic. In addition to domestic property investors, there has been steady growth in the number of NRIs (non-resident Indians) who are looking to invest in Indian real estate, giving an additional boost to the market as well.
Experts feel that NRIs have always invested in Indian real estate but majorly for rental or investment purposes. Yet, with the COVID-19 pandemic wreaking havoc on all spheres of life, the NRI community has realized the need to have a residential property in their home nation for permanent residence in the future. NRI buyers are also seeing this period as the ideal time to invest since they can benefit from lower rates of interest on home loans. The USA is where the highest demand is originating from NRIs along with the GCC and the United Kingdom as per the Co-Founder and Head of Sales, Square Yards, Anupam Rastogi. He also opined that Bangalore occupied the topmost position amongst coveted destinations for investments. It is followed by Pune, Hyderabad, Chennai, MMR (Mumbai Metropolitan Region) and Delhi-NCR. These are Tier-1 markets witnessing the highest traction from NRI investors owing to their ample capital appreciation prospects in the future. Amongst Tier-II and Tier-III cities, Lucknow, Ahmedabad, Chandigarh and Kochi are some of the top draws amongst NRIs according to him.
He also talked of how ready to move units with ticket sizes between Rs. 70 lakhs and Rs. 2 crore and more, are getting the highest attention from affluent NRIs who have deeper pockets. Implementation of RERA along with higher transparency in the Indian real estate market has also enhanced the interest of NRIs in the market along with higher consolidation in the sector according to Anupam Rastogi.
Other experts feel that luxury housing will witness more demand from NRI buyers owing to their higher disposable income and shifting perceptions about lifestyles. NRIs do not find it tough to invest in their home country with most procedures now being conducted online. Technology is being deployed swiftly for facilitating and confirming transactions. The COVID-19 pandemic has spurred higher digitization throughout multiple sectors including real estate. Developers are also turning to technological solutions such as VR (virtual reality), AI (artificial intelligence) and AR (augmented reality) for enhancing customer experiences and driving sales growth.
Negotiating a foreign investment may be a tough draw for several NRIs although they should carefully do their homework and consult professionals before putting pen to paper. Anupam Rastogi feels that NRIs should have a proper idea regarding the financial environment while conducting thorough research about the property types and other aspects, while getting encumbrance certificates and other documents carefully verified by lawyers before signing any property deal. NRIs should also keep foreign exchange related regulations in mind as per experts. NRIs investing in immovable properties should make sure that investments do not lead to any violation of the FEMA (Foreign Exchange Management Act) and the regulations of the RBI (Reserve Bank of India) in turn. NRIs should also take the taxation aspects into account before purchasing real estate
https://www.squareyards.com/blog/indian-real-estate-witnessing-growing-nri-demand-key-things-to-look-for-while-investing
