After touching the record high prices, the real estate has observed steep fall in pricing after demonetization and other regulatory norms as RERA and Benami Bill. As the pricing in the realty segment has been stabilized and the sector is on the verge of recovery, many NRIs have shown their keen interest to invest in India as an avenue of great investment.
Owning a property in India add a nostalgic value to the NRIs and also benefit them significantly from the virtue of investment. Considering the Forex leverage, NRIs are not required to put large investments into Indian Realty. The recent survey indicates that the NRI investing in property includes the cities Ahmadabad, Delhi-NCR, Mumbai, Chennai, Kolkata, Chandigarh, Bangalore, Dehradun, Hyderabad and Pune. NRIs are mainly from the countries from Middle East, South Africa, UK, Canada, South Africa and Australia.
Top Indian Cities for investment in Indian Realty
Bangalore is the most sought-after destination for NRIs when it comes to investing in real estate in India. With its commendable amenities, the Bangalore offers a high lifestyle that is apt for NRI who are planning to settle down in future. Demand for residential property is quite high as well so rentals are also quite high. Hub to major IT companies, the city expects a constant boom and thus the chances of capital appreciation are quite higher.
Ahmedabad is the next destination close to Bangalore where NRIs like to invest after Bangalore. Comparative to Bangalore, the prices of property are quite affordable. Various residential and commercial projects offer a stable growth thus inducing NRI investments in real estate in India.
Pune is the third most significant city that NRI wish to invest in India. The two factors that make Pune a great destination for NRI investment are the pleasant weather and the increasing IT culture. A study suggests around 30.5% NRIs prefer to invest in Pune due to its noteworthy advantages.
Another 28% of the NRIs are keen to invest in Chennai as a prospering city in India which has been technologically driven serving better avenues for investments to NRI.
Goa is another hot-spot for investments by NRI as it is one of the top holiday destinations that offer great price appreciation and bright future aspects. The beautiful beaches of Goa are another reason that let the NRI explore the Goa for its residential projects.
Despite being the National Capital, Delhi bags the sixth place in the list of top preferred cities by NRI for investment purposes. The strong infrastructural facilities offered by the city is no doubt alluring the NRIs for investment but the soaring high prices of the property here redirect the investment interest of the NRI investors to its outskirts and adjoining regions of Gurugram and Noida.
Benefits extended by the government
With ease in the norms by Reserve Bank of India (RBI) and Foreign Exchange Management Act (FEMA), the government is facilitating the easiness to the NRIs to invest in the Indian Realty segment. The tax implications have also been softened to an extent, helping NRIs to choose Indian Real Estate as a promising investment avenue.
The growth of the Indian economy has been propelled further with the real estate segment which has been declared as the second largest employer in the country. Constant investment by NRIs helps in strengthening the Balance of Payments of the country thus intensifying its economic growth.