Why should NRIs invest in Real Estate in India?
Being a booming economy, India has been a hotbed of investments for many years. The Indian real estate sector has been a particular favorite among investors from around the globe. With newer geographies undergoing constant development, the market has been promising for real estate investors. As India continues to develop and grow, many Non-Resident Indians (NRIs) have started looking at investing in properties in the country to create an avenue for coming back and settling down in the future. Also, with the corporate sector thriving, the demand for rental commercial spaces and residential units has been on an upswing making the sector a good avenue to generate returns. Here are some reasons why NRIs can consider investing in real estate in India.
India is a fast-growing economy
The performance of an economy has a direct bearing on the way the real estate prices perform. In a growing economy, businesses thrive and create employment for people. This results in an increase in the demand for rental homes and office spaces. Also, growing economies are the perfect breeding grounds for thriving economic markets that help people generate good returns on their investments. NRIs living in developed countries can find promising real estate investments and be a part of the growth story of their home country.
Real estate investments are known to help generate wealth over the long term. If you invest in a residential or commercial space, its value increases with time. However, the rate of increase depends on a range of factors. Primarily, developing localities tend to offer a higher rate of increase in property prices compared to developed and/or saturated markets. In India, many smaller cities like Pune have experienced a massive demand for real estate properties from investors since it is standing on the cusp of massive development. Buying the right property at the right price and at the right time is key to high capital appreciation and many Indian cities offer promising options.
Traditionally, Indian businesses were centered on opening offices in a handful of cities in India like Mumbai, Delhi, Chennai, etc. However, over the last couple of decades, there has been a shift in this trend with many companies opting to open offices in smaller cities like Ahmedabad, Pune, etc. As a result, the erstwhile concentration of the country’s working population in metropolitan cities has now become diffused and spread across various cities. Hence, there has been an increase in the demand for rental accommodation. This has created an opportunity for investors to buy residential units and earn regular income by renting them out.
The declining value of the Rupee
In recent years, the Indian Rupee has been declining in value against the US Dollar. In simpler words, you can buy more Indian Rupees for the same amount of US Dollars now than before. Hence, if you are earning in USD, then investing in India has become cheaper due to the declining value of the INR.
The Indian Government has formulated several policies and guidelines to make it easier for NRIs to invest in the country. These include a simplified taxation regime, indexation benefits for properties held for a long term, and a hassle-free payment process.
With declining interest rates on fixed deposits and increasing volatility in the stock markets, real estate investments are growing in popularity among NRI investors as they offer the dual benefit of capital appreciation and regular rental income. Many NRIs are looking at cities like Pune that are expected to become the nuclei of growth of the country and investing in commercial and residential properties.
Talking about Pune, BramhaCorp offers a range of modern commercial and residential spaces in the city with modern amenities. The residential complexes like THE COLLECTION by BramhaCorp and BRAMHACORP SMART at New Kalyani Nagar are designed to cater to the needs of modern living. BRAMHACORP BUSINESS PARK at New Kalyani Nagar and BOULEVARD TOWERS by BramhaCorp at Pune camp are exquisite commercial office spaces in the heart of the city. Further, the latest offering, BRAMHACORP TOWNHOUSE offers commercial and pre-leased residential units, making it ideal for NRI investors.