Money Matters October 31, 2018
The upcoming festive season is something Indian’s wait for the whole year round. Preparations and planning for this time of the year starts early as we wait for our loved ones to come together and celebrate the festivities with them. The festive season is the time when Indians around the world tend to visit the country leaving no stone unturned to enjoy the festivals with their loved ones. This time period calls for a lot of long-term purchases; it is considered to be an auspicious time to make investments. Just like gold and silver, the real estate industry also becomes very favourable to invest in. It becomes a golden opportunity especially for NRIs to invest in this sector.
Developers launch an array of new and different apartments with attractive discounts this time of the year which makes it highly profitable for NRIs to invest for long-term returns. The new launches have seen a steady increase in the past couple of quarters, primarily driven by projects below Rs 6 Million ticket price.
Given the recent downward spiral of the Indian Rupee to INR 72 being equivalent to $1, this festive season is likely to be the best time for NRIs to invest. Over the years, the Indian real estate sector has seen a steep rise in sales during the festive season due to a few reasons:
- The festive season is considered an auspicious time for buyers to purchase
- Interest rates and offers on loans are attractive making this time more favourable
- There are various benefits on registration fees and stamp duty during this time of the year
- Various attractive offers on the property can be availed during this time like free car parking space or free appliances for your new home
India’s real estate industry is projected to reach USD 180 Billion by 2020 from USD 126 Billion in 2017, according to a joint report by CREDAI and JLL. Regulatory reforms, steady demand generated through rapid urbanisation, rising household income and the emergence of affordable and nuclear housing are some of the key drivers of growth for the sector. Interest rates on home loans are as low as 8.40% – 8.65% for a tenure as long as 15-20 years currently.
Apart from the latest currency exchange rate, with the new regulatory environment in India after the implementation of futuristic policies like RERA, demonetisation, and GST, Indian real estate sector is all set to be en route a positive road opening several new and transparent avenues for NRI investment. In fact, it is believed that the current regulatory changes in India have made the sector more competent and transparent, rendering the environment suitable enough for NRI investment in property.
Apart from other factors, solely investing in Indian real estate can be highly beneficial for NRIs. If not a place of accommodation during the visits back home, the properties can generate a significantly profitable income in the form of rent. There is a significant chunk of the Indian demographic who slowly shift to being NRIs from RIs and you could also be one among this chunk in the near future. The main advantage of NRIs purchasing homes during holidays is that they can see the property and negotiate the deal themselves in person while visiting home which in turn gives the purchaser complete transparency and confidence in the purchase without a hint of ambiguity.
We at Omaxe have been successful in delivering homes to many NRIs all over the world since 1987. With our presence in 8 States and 27 cities across Northern India, specialising in commercial and residential real estate, we are one of the few leading real estate companies who has cleared all the latest government regulations and reforms such as RERA. To know more about us call us at +919015161718 or visit Omaxe.com