Real estate investment is seductive and entices people from different walks of life. NRIs are not left behind in their love for real estate and make decent investments. But what are the reasons that make their flirtation with real estate investments so fruitful? Find out.
Depreciating Rupee
With the rupee losing its value against dollars, NRIs have a clear edge over locals when it comes to real estate investments in India and with the rupee set to depreciate further, the purchasing power of NRIs would get a further boost. Heavy investments in real estate can prove to be a very worthy investment for NRIs looking for profitable investment options.
Flourishing Market
Corona Virus wreaked havoc on different industries and real estate was no different. However, with the pandemic on the wane and the economy fast getting back on track, the demand for investment in real estate has started peaking up.
This would spice up the property prices and give the NRIs a wonderful opportunity to earn maximum on their investments. Moreover, the new segments of investments like fractional ownership of land, warehousing, co-working spaces, and commercial real estate present a golden opportunity for NRI investors who want to invest in real estate.
Diminishing Interest in Other Investment Tools
Foreign investors have always gravitated towards investment tools like Fixed Deposit (FD), Gold, and Equity market. However, these investments are subject to market fickleness and therefore the money invested stands a perpetual risk of loss. The falling returns of gold and fixed deposits further discourage the investors. Take for instance the case that FD interest in most cases comes to 4-5% which can only be compared to the inflation rate which transpires into poor returns.
Real estate, on the other hand, has emerged as a lucrative investment option for NRIs as the boom in smaller towns has widened the options. As remote towns become powerful engines of growth, NRI investors can strike big by making real estate investments in these towns & cities.
Easy Taxation & Payment Option
Simple and easy taxation also encourages the NRIs to invest their surplus money in the real estate sector in India. They also stand to get indexation benefits for properties held in the country. Take for instance the fact that the immovable properties held for more than 24 months become long-term capital assets and stand to get an indexation benefit with simplified taxation at 20%. The Income-Tax Act of India also offers certain tax rebates under Sections 80C and 80TTA.
The simplified payment mode is another add on that cheers up NRIs to invest in the country’s real estate sector. When buying any property, the NRIs can transfer the money to the NRO account and make the payment from this account or they can choose to transfer the amount directly to the account of the seller. A pre-defined check list allows NRIs an opportunity to invest in the Indian real estate sector in an easy and stress-free manner.
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