NRIs Are Increasingly Investing In The Real Estate Properties In India

The confidence-boosting regulations such as RERA (Real Estate Regulatory Authority) Act introduced in 2016 brought a revolution in Indian real estate as it encouraged more and more buyers including NRIs to invest in real estate properties.​

While the response of NRIs was going well, the outbreak of the Covid-19 pandemic has turned out to be a catalyst with the sector receiving overwhelming queries on property buying from global Indians.

The pandemic has brought about a change in everybody's mindset regarding how and where money should be spent and invested. The realisation of owning a tangible asset is immense and thereby, making property investment the immediate step. As a result, NRIs have started showing a keen interest in the Indian real estate market, both as homebuyers and investors.

Factors that have boosted the confidence of NRIs to invest in Indian real estate amid Covid-19 chaos include:

• Record low borrowing costs.

• Fall in the price of properties.

• Attractive offers and discounts by the developers.

• Several states including Maharashtra reduced the stamp duty. A cut in stamp duty impacts the final cost of the projects and makes the deal more appealing for NRIs. The state of Maharashtra, for instance, slashed stamp duty from 5% to 2% between September and December 2020 and saw record-breaking property registrations during the last two months of 2020.

With a rise seen in the sale of residential properties, the enquiries by NRIs are mostly originating from the European and Gulf countries.

Prominent factors that have made Indian real estate more lucrative for NRIs