Is It Lucrative For NRIs To Invest In Indian Real Estate
The last couple of years have been both critical and transformative for India. The fluctuating rupee, RERA, GST and many such phenomena like these have hit the market for better. Many industries witnessed positive changes with the streamlining reforms. The Indian real estate market was also benefitted with the same for both investors and home buyers. Earlier, investors were quite apprehensive about investing in Indian real estate due to lack of transparency and safety issues. However, now the trend is changing. The year of RERA has hugely influenced the Indian realty industry for good. Transparency and consolidation have helped the market evolve and shape in a positive way. Moreover, weakening of rupee against the dollar has made investments in India a lucrative opportunity.
In fact NRIs have become really assertive about investing in Indian real estate. This trend continues to grow stronger due to the reforms that brought transparency and accountability in the sector.
However, apart from the rupee angle, there are other factors that making Indian real estate attractive for NRIs. Take a look:
- Profitable locations
Apart from metropolitan cities and Tier-1 cities, Tier-2 and Tier-3 cities are growing as profitable centres for real estate investments. These cities are backed by fast paced infrastructural development and many commercial ventures are setting up their offices. This in turn has resulted in an upswing of property value which is only expected to rise further. Therefore, investing in properties in India could be a smart move for NRIs right now.
2. High rate of appreciation:
Currently, the returns from properties are good in India be it residential or commercial. The government has introduced many policies for the development of cities like the smart city project. This is helping in the infrastructural and economic growth of the cities in India. With the rise of multinationals and IT giants, there has been a sudden demand for residential properties near commercial sectors. Subsequently, a rise in the rate of appreciation is obvious. Moreover, these investments could prove to bring high rental yields as well.
3. Weakening of rupee:
A downfall for a few could be valuable for many. The value of Rupee has gone down. This gives more power to other currencies. Therefore, buying a property for those who earn in foreign currencies has become very affordable. The falling rupee has made it advantageous for the NRIs to buy properties at a cheaper rate in India. Moreover, the investors get more square feet of space for the same amount in foreign currency.
4. A better scenario:
The regulatory reforms has brought in transparency and accountability in the sector which has resulted in a win-win situation for both property buyers and developers. Policies like RERA and GST have streamlined the real estate. As home buying is regaining traction, NRIs are confidently willing to invest.
There are many lucrative markets in India to invest in properties. However, as Mumbai is one of the fastest appreciating location, investing here could be fruitful. One of the plushest areas of Mumbai, Vile Parle is a thriving location that is surrounded by the best infrastructures and destinations in the city. The locality has witnessed a steady appreciation in property over the last few years. Given the ever-so-burgeoning residential projects in Mumbai, Vile Parle has all the makings of a profitable investment destination.
One of the most renowned real estate developers in Pune and Mumbai, Kolte-Patil Developers is coming up with its new venture, Jai Vijay (The project has been registered via MahaRERA registration number P51800004446) in Vile Parle. The project is a meticulously planned residential development spread across 2.25 acres – the largest land bank in Vile Parle with 3 towers of 11 storeys each. Adorned with an expansive 1 acre open space and top-notch lifestyle amenities, the project offers well-planned and spacious 2/3 RLK residential apartments in Vile Parle, Mumbai starting from Rs. 3.06 Cr*.