How Are NRIs Selecting the Best Property Investments in India?


While it’s almost always a good time for Indians to invest in properties in the country, there are constant fluctuations and temporary drops in the cities’ real estate rates coupled with other factors, that could puzzle the enthusiastic investor in you, especially if you’re an NRI! Most Indians living abroad prefer to own one or more properties back home, and constantly strive to get the best deal for the perfect house. If you are an NRI, and are on the lookout for affordable property, here is a helpful list to simplify the process for you!

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How Are NRIs Selecting the Best Property Investments in India?

Benefits of Buying Property in India

Favourable Long-Term Returns

The increase in demand for properties in India’s urban cities brings forth the fact that the real estate market is still growing at a phenomenal rate. Witnessing an 87% increase in property rates just in the last decade, the whole realty sector in major cities, which includes the residential, commercial, retail and hospitality verticals, is estimated to grow at 30% over the next decade. This implies a market size of a whopping $180 billion approximately by 2020. While past data doesn’t predict what exactly the future holds, it does broadly indicate where we’re headed. Whether you’re a resident or an NRI, investment in Indian real estate is sure to give you returns that are much higher than what was anticipated a few years ago.

Higher Demand for Commercial Real Estate

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If you’ve decided to invest in an Indian property for the purpose of letting it out for use as an office space, it would help you further to recognize that over the next five years, office space in the commercially inclined cities is likely to occupy about 200 million sq. ft.! Post the global financial crisis a few years ago, the real estate prices in Mumbai, Delhi and other cities have dropped by about 35 % to 40%. This is an excellent opportunity to invest in commercial real estate, and give it out on a commercial lease which would be long-term and potentially profitable.

Smaller Units and Finding Tenants

If leasing your property to a commercial establishment is not your cup of tea, there’s always the smaller, residential units you can turn to. The commercial hubs of India have populations between 15 to 23 million people in each city, and growing. These financial and commercial hot-spots of the country attract thousands of people every month thanks to the employment opportunities these cities offer, making them some of the best investment options in India. The 2011 census claimed that there are anywhere between 15,000 to 21,000 people per square km on average in the cities as compared to New York’s 10,800 people per square km, making Indian cities some of the densest in the world. So, if you’re in another country and not using your house in India, you always have the assurance of being able to give it out on rent.

Plentiful Choices of Affordable Projects

There are close to 18,000 New Projects and properties with varying costs and benefits available each in Mumbai and Delhi, 32,000 in Chennai and 16,700 in Kolkata. Be it a residential haven in one of the topmost localities or a space for commercial use right in the hub of a business park, the choices are plenty. As an NRI, investing in these projects is a good option as returns can be gained instantly by renting or leasing the property. On the other hand, investing now will let you own the property back home at an affordable cost.

Invest Now for Better Growth Rate & Gain

A property purchased now will appreciate in its value over the years to come. With this, the Compound Annual Growth Rate (CAGR) also increases. Investing in a property, residential or commercial, on any given day at a comparatively lower rate and waiting for three years to sell at a higher rate, will also get you Long-Term Capital Gain. For NRIs, similar to resident Indians, the income tax applicable on an LTCG is lower. The STCG (Short-Term Capital Gain) is applicable when a property is sold within three years of acquiring it, so it’s advisable to wait until the three-year mark before selling.

Choose Space in a City

As an NRI, you can either purchase a private or a business property in India. There are restrictions for an NRI when it comes to the purchase of agricultural land, farmhouse, ranch or a homestead house. On the other hand, there are no limitations on how many commercial, residential or retail properties you can own in an Indian metro city. You get to choose from exquisite villas to apartments or commercial properties in some of the best cities in the country!

The Currencies

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With the ratio of the Rupee to some of the popular foreign currencies constantly being so high, and with minimal predicted changes, it would be wise to make hay while the sun shines, and invest in a property in a leading city soon. Earning well in Kuwaiti or Bahrain Dinars, Dirhams, Pounds, US Dollars or Euros, related to all of which the INR has depreciated by around 21%, an NRI can quite comfortably make an investment in Indian real estate.

Choosing the Homeland

Around the globe, India has been touted as a country to watch out for. The Indian economy is noticeably growing, especially in terms of career opportunities and real estate. A thriving economy, and a flourishing start up ecosystem means there’s now a tonne of opportunities in different areas for everyone! If you are looking to move back to India sometime in the near future, investing now in the one of its metropolises is a promising choice.

Choice of the Best Deals and Properties

Property exhibitions going on in the leading cities have given easy access to locals and NRIs alike to all the inside information about developers and sellers, localities, the variable rates, etc. They open your eyes to a lot more here than you would learn through all the research on the web and on the news, adding up data and keeping track of the changing laws. You get to explore multiple projects in the respective cities all at the same time, and choose the best deal that interests you, especially when the exhibition is available online as well.

The real estate market is booming and purchasing a property now in an Indian urban city isn’t as gruelling as you might expect, especially so when you choose easy ways like dealing through an organised property expo. Even when you’re in a different country, the Indian Real Estate Show – Abu Dhabi, by Estate Avenues and Housing, allows you to explore properties online! Register for the exhibition here, to learn all about the properties in Mumbai, Pune, Bangalore, Noida and more  – all in one place!:

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Category: Lifestyle

Debora Berti

Università degli Studi di Firenze, IT

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