What Will Guide Future NRI Investments In India’s Real Estate?
The government in the past couple of years has gone all out to attract investments by non-resident Indians (NRIs) in real estate. Rules and regulations have been eased to simplify home buying by NRIs much easier. This certainly encourages more and more people to invest in India. However, what kind of properties actually get more attention from this category of buyers?
- They are the people who have been places and value everything precious. This is why NRIs home buyers seek to invest in properties that offers better amenities and social infrastructure. This is why NRI investments in luxury property in India is more than any other segment.
- The return on investment on properties in India has been lackluster in the recent past, especially in major cities. This is why NRIs are now focusing on investing in Tier-II and Tier-III cities which have more scope for future growth. Another reason for investing in these cities is that while the land supply is aplenty, prices are much lower.
- The government’s Smart Cities Mission is also expected to attract more and more NRI investment in India. While investing in cities that have found a place in the list would help NRIs earn better return on their investments, they will also be a part of India’s growth story.
- Although real estate in metro cities has been facing a tough time, they will still see investments by NRIs in future. Why so? Migration to big cities is on the rise while property prices are sky high. Rental housing will get a boost from all this. As a matter of fact, most NRIs invest in India to earn money while renting their properties.