Non-Resident Indians (NRIs) can profit greatly from real estate investments in India’s affordable residential property market. With the real estate sector on the rise, NRIs are increasingly attracted to this investment opportunity and are seeking residential services to facilitate their investments. In 2022, NRIs invested $15 billion, and this trend is likely to continue, with NRIs expected to account for 12% of the Indian real estate sector by 2023. This expanding sector presents a great opportunity for NRIs seeking consistent rental income and residential property management services.
India’s Property Market Potential:
The Indian real estate market has shown sustained growth, with properties appreciating at a 7-10% yearly rate. NRIs have made considerable investments, contributing $13.1 billion by 2022. International investments have more than doubled, accounting for approximately 20% of total real estate transactions in the country. This boom is expected to continue, making it an appealing alternative for NRIs. Renting out properties not only increases income but also provides tax benefits, making the investment in residential property more appealing.
Leveraging Currency Exchange Rates:
The Indian rupee’s depreciation against international currencies, particularly the US dollar, increases the purchasing power of NRIs. Due to the depreciation of the rupee, a plot valued at Rs. 82-83 lakhs is now worth Rs. 82 lakhs, allowing for significant savings. The rupee touched the level of Rs. 81.88 against the dollar in 2022, making real estate investments more cost-effective for NRIs.
Diverse Investment Opportunities:
India offers a wide range of investment opportunities, including residential property, villas, commercial spaces, and land development, along with specialist segments such as serviced apartments. The government’s initiatives to promote affordable housing provide numerous options for investment, ensuring lucrative returns for NRIs. Due to the increased need for lodgings, rental income opportunities have significantly increased, emphasizing the importance of residential services and residential property management.
Transparent Regulations and Investor-Friendly Policies:
The Real Estate (Regulation and Development) Act encourages transparency and responsibility in the sector. NRIs benefit from improved developer reputation and a favorable investment climate. The Indian government’s policies, such as simplified cash repatriation, capital gains exemptions, and streamlined property buying, attract NRI investments, allowing them to diversify portfolios and tap into India’s economic growth potential.
Investing Responsibly for Sustainable Impact:
NRI investments in Indian real estate development projects not only provide rental income but also benefit the environment and the community. Long-term cost reductions, greater occupant well-being, and a strong outside customer base result from wise investment decisions. The Guardians, a residential property management firm, offers diverse residential services along with their team of qualified specialists to assist NRI clients in making informed property development decisions, ensuring a lucrative and long-term investment path.
To learn more about property development and explore these prospects, visit The Guardians real estate advisory website or schedule an online meeting with one of our advisors today.