With more categories to invest in and with Government of India’s ‘Make In India’ initiative which calls for greater indigenisation of industries, the real estate market has paved the way for Non-Resident Indian (NRI) investors.
By 2022, NRI investments in the country’s real estate are expected to be 30-35 per cent of their total remittances. According to the World Bank report in 2018, India reported $80 billion in remittances, which had $13 billion investments in the real estate sector. This scenario is shouldered by the fact that India’s real estate looks alluring for Indians as well as NRI investors as the residential, commercial and institutional market is expected to grow in coming years. As the standard of living is improving, the prevalent need of malls, complexes, cinema halls, commercial buildings, office co-working spaces and office spaces are increasing simultaneously. Since past years, NRIs have invested in residential projects majorly, but now with changing trends, options have open for them in other sectors too.
One another thing that gives NRIs motivation to enter Indian market is the fact that now the government has brought transparency in the sector with a new set of laws and legislation with The Real Estate (Regulation & Development) Act of 2016 [popularly known as RERA] and Good and Income Tax (GST). This act not only promises transparency but it also ensures the security of investors. With this act, each project of residential, commercial and institutional needs to be registered with the government first. Further, a fixed timeline of delivery is set, failing which the developer is liable to punishments. This was unlike yesteryears when the Indian real estate market was considered a sloppy investment as no clarity and transparency were maintained and putting money in real estate was seen as a risky thing.
Other than these reasons, two more reasons make it a perfect fit for anyone and NRIs to invest in India real estate sector. Since last few years, property rate has been slipping down by almost 10-15 per cent in many hub cities. Secondly, depreciated Rupee has boosted their buying capacity and capability which promises additional 10-15 per cent profits. These bonuses give them an average edge of 25 per cent on bookings, i.e., right at the onset of their entry in the market. For NRI, home is where the heart and roots are. For them, their country is the utopian world that calls them and hence they always nurse a dream of returning to their homelands someday. Country alludes to many things for them, its a nest of their parents care, love, comfort, security and belongingness. Hence, with transparent laws and better investment options available in the real estates of India spread across many cities of the country, they can plan their investments right.