Where and why should NRIs invest in the Indian property market today?
It is a very good time to invest in the Indian property market. The pandemic surely pushed prices down slightly, but now the markets have accelerated and are on the verge of touching pre-pandemic levels.
All cities for that matter are seeing a boost, whether they are metropolitan cities or Tier 2 and 3. After living abroad, NRIs have started investing in properties in these cities to s settle down with their family. This will further strengthen the Indian real estate market as a whole.
People are not likely to lose money in the real estate business. Another good reason to invest is current rental income.
What are the factors to consider when investing in real estate in India?
The most important factor is the reliability of the developer. If the developer has a reputation and is trustworthy, it will go a long way for the investor.
Trust is an important factor. Thanks to RERA, the money is placed in escrow and is released as the project progresses.
Are there any incentives for property buyers?
Fees have been reduced by up to 50%. This encourages the Diaspora and especially the Indian investor to invest in India because registration and other fees have come down. Some states have reduced stamp duty, which is helpful. The tax department grants a rebate to people who have invested in their first home. This therefore supports the investor.
Which cities have strong NRI interest?
Bangalore, Hyderabad, Chennai, Mumbai and NCR have always topped the list. But other cities are catching up with this trend. Today Ahmedabad is a very progressive city, many projects are coming here. Thus, investors are now more inclined to travel to Ahmedabad.
We see a similar trend in Tier 2 and Tier 3 cities. Previously we only knew about Delhi, Mumbai, Chennai and Kolkata but now there are so many cities attracting investment from the Indian community.