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2023-07-03 05:15:35 /
NRIs Eye Attractive Returns From Real Estate Investments In India
A recent survey on the sentiments of NRIs in investing in the India real estate sector revealed that they are in favour of investing in the country over the Western markets. The potential of earning a high return from these investments prompt investors to channel their funds to the realty sector in India. For NRIs, there are different risk mitigation strategies like diversifying currency exposure, so that they can overcome currency fluctuations due to inflation.
An NRI-focused fintech platform carried out the research that reveals that about 53% of NRIs prefer investing in domestic market rather than the international ones. This survey evaluated data from different countries like Singapore, the US, the UK, and Australia, among others. The report further focuses on the challenges faced by NRIs and their preferences while investing in India. The researchers commented on the economic performance of India and the country’s investment outlook, which looks great for NRIs. The low market volatility in the real estate sector and stable economic growth in different sectors make the industry appealing to NRIs.
According to a research, a sizable population of India is residing in the UK, the US, Singapore, and Australia. These people constitute the large NRI population who are looking forward to investing in the real estate sector in the country. The research also found that around 46% of these NRIs face hurdles in obtaining necessary licenses or approvals while investing in real estate. Besides, repatriating funds happens to be another obstacle for more than 35% of NRIs based in the UK and other countries. For Singapore-based NRIs, there’s another challenge as foreign investments are restricted in specific sectors.
Regardless of these hurdles, NRIs continue to invest in the Indian real estate sector. The growth potential of the property industry in India looks great.
Should You Invest In Commercial Or Residential Properties To Generate Rental Income?
Planning to invest in the real estate sector to generate a consistent source of income? Well, you might be in a dilemma over whether to invest in a residential or commercial property. Both these segments in real estate offer lucrative rental returns. However, before channelling your funds, consider the location, operational costs, and ease of finding tenants.
So, if you want to generate rental income, it pays to go for a commercial property. The returns on investments for commercial properties are typically higher compared to residential ones.
What makes commercial properties a better investment avenue?
1. High demand for commercial properties
India has got a booming economy, and the demand for commercial spaces is consistently on the rise in all the cities. Property price appreciation further contributes to the high returns. Besides, investors manage to diversify their asset portfolios by purchasing commercial properties. Even when the real estate industry undergoes a downturn, businesses and MNCs would be expanding in the commercial sector. This fuels a high demand for commercial properties in the country.
2. Longer tenancy period
Compared to residential properties, the tenancy periods and rental yields for commercial properties tend to be higher. This enables investors to stream in a steady flow of income. For commercial properties, the lease tenures range between 5 to 10 years, or even more. This helps investors stabilize their income from these properties.
3. Tax benefits
One of the commonly overlooked benefits of investing in commercial real estate is the tax advantage. Property owners can enjoy a deduction of interest on property loans and depreciation. These savings contribute to their long-term financial growth.
4. Growth potential
Compared to residential properties, the growth potential is higher in commercial estates. The reason is, these properties are strategically located in areas undergoing economic growth. Mostly, real estate experts recommend investors to purchase commercial properties in prime technology hubs and business districts.
Investing in retail spaces, office spaces, and self-storage facilities would be an intelligent decision indeed. Commercial real estate investments have proven to yield better returns compared to residential properties.
Why Makes Indian Real Estate A Major Draw For NRIs?
NRIs find a lucrative investment avenue in the real estate market in India. Thanks to the favourable policies of the Indian government, the country has been attracting investments from foreigners to stabilize its economic growth. The real estate industry in India presents several attractive opportunities for investments. This has fuelled a constant spike in NRI investments.
The returns are high on real estate investments, as the industry in India is booming. Besides, both commercial and residential properties in the country are undergoing a high demand. This trend has significantly encouraged NRIs to choose India as their investment destination. High capital appreciation is the key reason due to which NRIs are willing to invest in the real estate industry in India.
In India, the government has relaxed norms regulating investments. Currently, the real estate sector can receive 100% FDI. So, finished real estate projects can be a great investment opportunity for NRIs. Shopping malls, commercial centres, and townships are some of the popular options for NRIs to invest in. Besides, the government has eased up norms regarding the repatriation of funds. As a result, NRIs can enjoy a seamless investment experience in the country’s real estate sector. Moreover, the exchange rate also looks favourable for NRIs.
In India, property prices have consistently risen over the last few years. When NRIs purchase these properties, they get an advantage of higher dollar value. For them, property values in India turn out to be lower due to the high purchasing power. Moreover, NRIs benefit from the high rental returns from Indian real estate. Those interested in generating passive income often choose the real estate sector in India.
For NRIs, the sector offers a wide range of investment opportunities. Different types of assets such as commercial properties, residential properties, and REITs are available for them. Compared to residential properties, the rental revenues from commercial properties are higher in India. With the country’s economy growing rapidly, commercial projects are currently in high demand. Naturally, NRIs can enjoy faster appreciation of their capital. Considering all these factors, the Indian real estate sector continues to attract NRIs.
The Importance of NRI Investment in the Indian Real Estate Market
The Indian Real estate market has been experiencing a boom in the past few years, attracting inventors from around the world. The drop in the value of the Indian rupee by 11% against the US dollar has opened the gate for opportunities for various investors, especially Non-residential Indians. The NRI Investments in Indian real estate have played a very crucial role in shaping the dynamics of the Indian real estate market. Their investments have become a vital source of capital which has contributed to the economic growth and overall development of the country.
When the pandemic posed humanitarian challenges in terms of work and lifestyle, the surge in the number of buyers in the real estate segment never saw a dip, which is very commendable. Today the Indian real estate market has become one of the most important investment choices due to capital appreciation. Gone are the days when NRI would rely on their friends, family to purchase a property in India. Dealing with property brokers was also a matter of concern due to scams. But with Digitalization taking over the world in various industries, investment processes have become a lot more simple and hassle-free. An NRI can simply scour the internet and multiple options on property investment would be made available to him in the comfort of his home.
Factors that drive NRI investment in India Real estate
When you make a wise decision to buy a property from a reputed builder, you’re not only guarding your investment but also bringing new opportunities in terms of asset appreciation, rental income and overall growth.
1. Financial and Emotional Significance to NRIs
No matter which part of the world they reside and work in, the connection to their roots in India will always be strong. It’s the dream of every NRI to own a home in India where they can later come down and lead the rest of their lives peacefully, which provokes them to invest in Indian real estate. Today you can find many prestigious projects in Kerala, in places like Kochi, Trivandrum, Kottayam, Thrissur & Calicut, spacious and with the finest infrastructure. These homes give them a sense of security and stability which invests one of the best choices.
2. Foreign Exchange Inflows:
With the NRI investment in real estate in India, the country gets a significant amount of foreign exchange which helps in strengthening the currency and balance of payments. With the infusion of foreign currency, the country can enhance liquidity, and most importantly attain economic stability and prosperity.
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3. Increased Investment Options:
The options for investment in the Indian real estate market for NRIs are diverse. They can invest in residential properties, commercial spaces, retail properties, or even vacant land. These kinds of investments allow NRIs to diversify their investment portfolio and avoid risks as well. The Confident Group, one of the most reputed builders, has garnered a huge name through its premium residential properties in Kerala and Bangalore. Their prestigious projects have made many dreams come true, making them one of the best property investment choices.
4. Long-term Capital Appreciation:
Investing in the Indian real estate market has proven to be a lucrative opportunity for NRIs due to the potential for long-term capital appreciation. The surge in the demand for housing, and infrastructure development contributes to an increase in property values. By making this wise choice, NRIs strengthen their growth potential and enjoy a substantial flow of returns over time.
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5. The Role of Technology in Real Estate Investments
Technology has played a crucial role in NRI investments in India’s Real Estate. It has completely transformed the landscape for real estate in terms of quick reach and access to important information. The adoption of digitalization has enhanced accessibility and transparency. One such major stride in the world of digitalization was the entry of Virtual Reality headsets. It has helped and influenced potential buyers in making key decisions before purchasing a property. The effortless walkthrough of the property gives the buyers a one-of-a-kind experience.
This medium has not only benefited the NRIs but has also done wonders for real estate builders and developers. Reputed real estate builders can showcase their prestigious projects with ease to their clients without missing a corner. Thanks to the kind of magic technology has woven for the betterment.
6. Rental Income Generation:
Apart from capital appreciation, NRI investments in Indian real estate can generate a steady income stream through rental properties. The demand for rental properties has seen a surge in major Indian cities, providing opportunities for the NRIs with an attractive avenue for passive income. Rental income can serve as a major source of savings for NRI families which can be later used for various purposes which makes investment in Indian real estate apt.
7. Government Initiatives and Policies:
The Indian government has implemented several favorable policies and initiatives to encourage NRI investment in India. These include relaxed regulations, simplified processes for property transactions, and tax benefits for NRIs. Such initiatives create a conducive environment for NRIs to invest confidently and reap the benefits of their investments.
In the realm of real estate, making a wise decision to purchase a property from a reputed builder in a prime location virtually guarantees asset value appreciation, and the Confident Group builders are one of the prime examples. Over the years, the confident group has garnered satisfaction from 11000+ happy customers for their premium properties in Bangalore and Kerala, making them one of the leading property builders in India today. Confident Group has now expanded into various verticals like Hospitality, Aviation, Entertainment, Education, Golfing, Retail, and International Trading.
INVEST IN REAL ESTATE NOW!!!
Right timing is essential in real estate. If you ever had an aspiration to buy a home, but somehow could not, now is the time to put it through in action.
According to real estate experts, it’s the best time to invest in the real estate sector because big developers are here to redefine the way real estate in India operates and is looking to make it the most promising investment around. Right now, the market is sending positive indications as all the deciding factors in real estate are in a home-buyers’ favor.
Low interest rates, better affordability, new government incentives, Buyer safety regulations in place and a few other reasons have made this the best time to invest in real estate.
1.Lowest interest rates ever
Housing is as affordable as never before because interest rates are at an all-time low. One can’t recall the last time that interest rates had been below 7%, but they are today. Many people now see EMIs as SIPs into a non-volatile asset. This sentiment has grown a lot because home loan interest rates are at their cheapest. But this phase won’t last long. The chances of RBI to drop rates in the future are very limited because the whole country’s economy is growing. Keeping inflation in mind, then RBI might not reduce the interest rates further. So, now that we might be at the bottom of the interest rate cycle, this clearly seems to be one of the main reasons to invest in real estate now.
1.Encouraging government tax rebates and subsidies
On top of interest rate reduction, the government has taken steps to ensure that housing becomes attractive to home buyers. Recently, the Indian government introduced new incentives like interest subsidy on housing loans, reducing the tax burden on under-construction houses and reducing stamp duty charges in some regions. In addition to these, a series of regulatory reforms such as RERA and GST, the introduction of schemes like Housing for all, PMAY-CLSS by the government have made the real estate market one of the most attractive investment options right now.
1.Amazing offers provided by builders
Today, the kind of deals that developers are offering to customers have not been seen in the past. Developers are offering a plethora of attractive enticements that have turned this dream of having a real estate asset into reality. These include cashback schemes, more comfortable EMIs on loans, refundable booking amounts, attractive price protection propositions, YOU BUY, WE PAY offer where the customer books a property project and enjoys no PRE EMI till possession.
One may probably not get such attractive deals or payment schemes ever again in these current locations/projects. These opportunities to seal a good bargain with discounts and incentives won’t last forever. So, act now.
1.Real estate – The prime asset.
For a person looking to make long-term investments, available asset options include commodities, fixed deposits, equities, and real estate. Among physical assets, real estate has always been at the top, as it offers numerous benefits. Real estate offers you the best bid — stability, security, and safety, provided you choose a reputable developer. The pandemic has shaken up the world and changed the mindset of people because they want to feel secure in their own home. Ownership of a property brings an unmatched sense of security and stability along with an extra source of income if one decides to rent out their house. Having a rental income on the side would do anyone good during these uncertain times.
1.Property rates being at their lowest
Real estate prices are already at rock bottom. The property prices have not moved up. Fence-sitters have been holding back thinking the property prices will go down more, and then they will buy a house. But now is not the time to postpone this decision. If you’re expecting the prices to fall more, that will not happen as the demand for housing is growing. So, if you’re waiting for property prices to decline further, act fast. They actually seem to be on a rise.
The combination of stable property prices, interest rate at an all-time low, many near-completion projects, government tax schemes in fa
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