The belligerence of the Indian real estate sector in the post-Covid scenario and the recovery of the Indian economy in the face of a global geopolitical scenario prompted many NRIs to be inclined to invest in India.
Investors are motivated by high returns, hence their interest in domestic reality. For the past several years, real estate investments have been yielding impressive returns. Moreover, urbanisation has been going on rapidly. Because of this phenomenon, the demand for quality housing and commercial sites has increased. Therefore, the NRIs who have been investing in Indian reality tend to get many benefits, according to experts in the real estate sector.
The investment in Indian reality enables the NRIs to diversify their investment portfolio. Moreover, investments in real estate are prone to less risk. Over a period of time, the value of the asset increased. The value of property in strategic areas will improve further. Rental returns on investments in Indian real estate would be very attractive. In view of growing demand for commercial sites, the rental income would be significant.
Shall we find out the opportunities for investments in Indian real estate for the NRIs?
Residential properties :
Making investments in apartments, villages, gated communities, and other residential properties ensures the flow of investments for the long term.
Commercial properties :
The growing business activities in the country offer several opportunities for investing in commercial properties. The investments in office space, retail space, and industrial sites will ensure good returns, besides a faster appreciation of the capital.
Land :
Investing in the land is a wise decision, especially since the land reserved for development assures good returns. Expansion of the towns and cities and the development of infrastructural amenities ensure significantly higher returns. Making investments in urban expansion and infrastructural development projects would ensure investors derive more benefit.
REITs :
For NRIs seeking higher liquid returns and diversified investments, the better option would be Real Estate Investment Trusts (REITs). Without having to acquire property directly, the investments would be able to be made in real estate projects. But the NRIs should have some basic understanding of how the RIETs function before making their investments. They should know foreign exchange regulations, tax complexities, and so on. The fluctuation of the Indian rupee against the major overseas currencies influences the dividends. The tax matters are also very complex. There is a need to seek the advice of experts for greater understanding
