Big opportunity for NRIs to make money by investing in the Indian realty market
With the dropping value of rupee and the introduction of new reforms and regulations by the government, the real estate sector sustained a steady interest amongst NRI investors. The realty sector has witnessed a large interest of NRIs in the real estate market in India. Mostly owing it to the fluctuation value of the rupee. The trend is still active despite the government’s introduction of RERA. It has brought some transparency and accountability to the investments. All of this has proven to be lucrative for the non-resident Indian investors.
Investors are now aware of the stress in the sector and the need for cash flow for the developers. India offers a ton of opportunities and acts as a potential market for long term investments. The realty sector has undergone a transformation like no other. With the transparency and credibility in the sector due to RERA has improved manifold- saving NRIs 10-20%. the 10% depreciation allow the NRIs to avail 10% discount when compared to their counterparts residing within the nation.
There are a lot of factors that lead NRIs to invest in Indian properties. Depreciation of the Indian rupee against the US dollar is one of the main factors. With a GDP growth of 6.9% every year, converts into opportunities for investors to make great returns. The long-term robust economic growth is expected to come from economic reforms such as Real estate regulatory act (RERA)and the Goods & services tax (GST). The depreciating value of the rupee against the US dollar has slowed down the import of construction material and machinery leading to an upsurge in NRI investments.
The slashed rates of under-construction properties are also garnering heavy traffic through internet realty portals seeking to invest in luxury condominiums.
Property buying is genuinely grabbing attention and turning heads. With RERA and GST, the property prices are down by 10-15% and the depreciating Indian rupee adds another 10%, it is the best scenario for NRI buyers. Besides the favourable Indian real estate scenario and the emotional content for NRIs after buying a property in India, NRIs are exploring more investment opportunities.
In any case, developers are welcoming the positive impacts of government reforms and depreciating rupee on the NRI investors. One man’s trash is another man’s gold, after all! A sense of owning a house in their homeland coupled with the encouraging dip in the value of real estate seems to be heightening the sales of real estate projects for NRI clients.