The NRI community is not just a big volume, but are also a key economic enabler. Wherever they had their foothold, they have made a mark & played instrumental role in the development of local economies. With a mix of highly successful businessmen, venture capitalists, politicians, scientists, technocrats & corporate honchos, the community has made India grow economically. The NRI investment trend has gained momentum in the recent times. The year 2015 saw a total NRI investment of around USD 29 billion, where the nature of engagement is not just limited to finance & business, but includes numerous other dimensions such as social welfare, technological transfer, education & much more.
NRI Investment in Indian Real Estate
Real estate holds its own unique place when it comes to investments. Home ownership is not only emotion & prestige, but also a safe abode for their post retirement days. While NRIs can only invest only in a certain number of stocks & that too their value cannot exceed beyond the 10% of the paid-up capital of the company. On the contrary, investing in real estate by NRI is simple, with multiple options.
Market Size of NRI Investment in Indian Real Estate
With an estimated investment value of at around USD 11.5 billion in 2017, the coming of Modi government has been a significant boost to the confidence level of the discerning NRI investors. Large volume is being expected and market experts have shared an increased number of site visits already! A high transaction volume as well as value in the months of January & February have been predicted. The ticket size of the deals is expected to vary from USD 0.56 to 1.06 million over the time span of coming nine months. The facts show that over 20% of NRI investment in Indian real estate comes from the UAE, the reason being the multi-fold involvement of UAE based investors into the Indian real estate. Moreover, the UAE has an extensive Indian community, particularly in Dubai, Sharjah & Abu Dhabi. The majority of developers & marketing advisories have on-ground presence and representation in UAE. Canada, UK, Singapore & Australia are other major sources of NRI capital inflow in Indian realty.
Future of NRI Investment in Indian Real Estate
Prime residential deals are the major interest areas. The new technological tools such as Google apps, virtual & augmented realities will increasingly play a major role in bridging the geographical gap & help NRIs know more about properties in India, omitting the necessity of a physical presence. The latest technologies such as 3-D Architectural renderings & virtual realities are helping users visualize an entire property on the web itself without any necessity of making iterative physical visits. The real time inventory management & fully secured e-commerce transaction platforms that help users make final booking. The significant government initiatives such as Real Estate Regulatory Act (RERA) testifies government’s commitment towards nurturing more transparent & well-regulated real estate industry.
What do clients have to say:
Tahir Zafar, a Chartered Accountant from Dubai shares, “At the beginning of demonetisation period and suspected changes to happen to Indian real estate market, I was quite sceptical to park my money back in my home country. But now I can clearly see things happening for good and the markets turning up to be not only NRI friendly rather buyer friendly. So after a long pause I decided to park my hard earned money in the most promising and versatile market in the times to come irrespective of upcoming changes as they are the clouds which are going to clear for good and for all!”