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Why India becomes the preferred location for Real Estate Investment

With uncertainties brewing during the pandemic, followed by subsequent lockdowns, the Indian economy and real estate market faced a major backdrop, disrupting the trend of rentals, purchase, and leasing in Indian real estate market. However, it is now resurgent, becoming a hot topic among investors.

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Why India becomes the preferred location for Real Estate Investment

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  1. Why Indiabecomesthepreferred location forReal Estate Investment? Withuncertaintiesbrewingduringthe pandemic,followedby subsequentlockdowns,theIndianeconomyandrealestatemarketfaced amajorbackdrop,disruptingthetrendofrentals,purchase,andleasing inIndianreal estate market.However, it isnowresurgent, becominga hottopicamonginvestors. India beingoneofthemajorinvestment countries, itspromisingmarketattractsNRIsfromUSA,UK,UAE,and Canada duetohighreturnoninvestments, propellingeconomy, and severaloptionsavailableinthelocations. Accordingtoarecent report, NRI investmentgrewby12%intheyear 2022andisexpectedto growfurtheratahigherrate.

  2. Inthisarticlewewillunderstandthetrendsandthereasonofincreasein foreigninvestment. Depreciating RupeeValue Thedepreciationof currencydepends onseveralfactorsthatincludes worldwidegeopoliticalstability,declineinfoodimports,anincreasein oilcostandtheconcomitantincreaseininflation.Thedepreciatingvalue of IndianrupeesagainstUSdollarmaynotbethegoodnewsforIndian homebuyers orinvestors but it isanopportunityfor NRIstoinvestin India,a chancetoconvert theirhard-earnedmoneyintoalucrative investment. Duringdepreciationperiod, thevalueofIndiancurrency depreciates,andvalueof US dollarincreases.Therefore,inless investmenttheycanbuyanexclusivepropertiesandbigger spacesata lower cost.Thecapitalvalueappreciation, digitalprocess, andrental incomemakes pleasingsituationforinvestors. ExpandingMarket RealEstateisthe secondlargestemployer inIndia whichcontributes6-7 percentto theIndia’s totalGDP.However, duringpandemic itsawa majorbackdropbut withthehelpofgovernment policies favouring homebuyersanddevelopers,itisnowrevivingpostpandemic,attracting ahugetractionfrom foreigninvestors. Thegovernmentpoliciesand implementationofregulatorybodysuchasRERAhasimprovedthe residentialsectorbysafeguardingthehomebuyers,ensuringtheproject completionwithindeadlines,andrevivingthestagnantprojectfortimely possession. Alongwiththegovernmentpolicies,thecapitalappreciationandRBI’s announcereductioninreporatewhichincreasedtheinvestmentfrom homebuyers. In addition, attractiveschemes,discountsandofferslured the homebuyersandinvestorstoinvestinIndia’s boomingrealestate market. ThedevelopmentofsustainedinfrastructureinIndiaalso

  3. encouragedinvestorstoinvestinIndia. TheTier II andTierIII cities willactas adriverfor upcomingyears. Reducedinterestrate in other investmentoptions NRIs usuallyprefer investingin FDs,Equity, andGoldfromabroad throughtheirNREaccount. However, thedanger of losingmoneystays constantwiththeseinvestmentsduetomarketvolatility.Theinterest rateforFixedDepositsstuckbetween4-5percentwhichissubjectto theinflationrate,indirectlyresultingintopoor returns.Moreover,the expatinvestorshavebeendiscouragedbythedeclining returnpotential ofgoldandfixeddeposits.Hence,therealestateindustrycontinuesto bea profitablefinancialchoicefortheNRIcommunity. Thepotential growthof Tier IIandTierIIIcitiesandsmallercitieswill drive expansionandtheprospectofsubstantiallong-term profitswillcontinue tomaintaininvestor’s interest. Simplified TaxSystem As Indiacontinuestobe oneoftheleadingrecipientsof foreign currencyfromoverseas,asimplifiedtaxationenvironmentencourages NRIstokeeptheirsurplusmoneyinIndia.Additionally,NRIsreceive anindexationbenefitforrealestateownedinIndia.Theycaneasily investintheIndianrealestatemarketwiththehelpofasetpaperwork checklist.Whenbuyinga property, NRIscantransferfundstotheir NROaccountandusethesefundstopaytheseller.Whilepurchasing apropertyinIndia,theNRIinvestor is alsopermittedtotransfer the moneydirectlyto thesellers'account.Thissimplifiedpaymentoption alsomotivatesNRIs tocontinuemakingrealestateinvestmentsinIndia. TherealestateindustryinIndiaisexpectedtogrowrapidlysoondueto thecountry'srecoveringeconomy.Therefore,togainlong-termprofit, the NRIcommunitymustcontinue investingin India. SOURCE:https://www.jllhomes.co.in/

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