While the pandemic and the global economy have disrupted the world order, incidents have set active investors from the others. For the NRIs, opportunities back home are profitable with the fall of the Indian rupee. Lately, NRI investors have become cautious of the stock markets as the equity markets remain to oscillate & this is the reason why they are backing big time on the real estate sector.
The year 2019 was one of the most distressing years for the funding sector and amidst the recent turmoil of the pandemic, even the SBI, the country’s largest bank, has decreased interest rates on savings accounts and fixed deposits; this has made NRIs reluctant of trusting the banks.
Gold as an asset has lost its sheen and is facing oscillation in its prices. This is large because of the oil price war, which has started after the pandemic. So if we connect banks and gold, then real estate becomes a stable investment asset as the prices in real estate is at an all-time low right now and can go nowhere but up from here onwards.
The capital appreciation and a decent rental yield are fascinating NRIs to own a property in their mother country. NRIs from UAE, USA and Saudi Arabia are the frontrunners to spend in Indian realty. Earlier, only NRIs and foreigners with PIO card were authorized to fund in the real estate sector. Foreign investors other than NRIs were allowed to invest only in the development of combined townships and settlements, both through a wholly-owned subsidiary or within a joint venture company along with a regional partner. Nevertheless, the transformation that took places a couple of years back in this concern sanctions FDI in townships, housing, built-up infrastructure and construction expansion projects.
Another appropriate aspect is that over the last couple of years, various revisions were brought to the REIT regulations in terms of taxation. REITs are now also permitted to raise funds by issuing debt instruments. As REIT provides a chance to earn the advantages of investments in real estate without having the trouble of purchasing and managing properties, there is a strong probability of NRI investments in real estate in India being redirected to REITs.
under the aegis of Mr Navin Raheja, Managing Director, and Chairman, the business has pursued a course of steady growth and expansion year after year and has reported growing turnover and earnings. Raheja Developers has already delivered 7500 units to date, which includes 385 acres of land that comprises eight residential projects, seven commercial projects, three townships, and farmhouses. Taking a close look at the future plans, Raheja is developing The Leela Sky Villas, The Delhi Mall, Raheja Trinity, SCO Plots, Raheja Revanta, and Raheja Akshara which are a mix of uber-luxurious projects to commercial projects subject to approvals from the RERA and the governmental authorities.
Call for institutional and commercial properties are also determined to thrive over the next few years. With the development of unique micro markets and residential hubs, the collective need for malls, shopping complexes, multiplexes, commercial buildings, office complexes, co-working spaces, logistic and warehouse spaces will also be rising in tandem, and all this will be providing sufficient stimulus for the NRI investors to invest in the commercial properties in India.
Gurgaon and Noida are the most favoured investment destinations in Northern India, as these cities have a maximum number of commercial spaces which include IT parks, shopping malls, service apartments, etc.
Despite the slow economic growth, commercial real estate in India has performed excellently in the last year. The proven track record of the developers of completing the projects on the set timelines is an extra add-on. For NRI investors, it is recommended that they should rely on a reliable real estate consultant/realtor who will guide them to the best chances and also help them seal the deal.
As worrisome as the current situation is, one should not forget that troubled times bring equal opportunities with it and the present scenario is a highly convenient time for NRIs to invest in Indian realty and leverage on the current currency depreciation and record low prices.