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.
Why are NRIs keen to invest in Indian real estate amid the Covid-19 chaos?
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.
Mr. Bhaskar Jain, Head of Sales, The Wadhwa Group said, "Around 15% of our overall sales in the last two quarters came from the NRI segment and most of it has originated from West Asia, the US, and Africa. The demand for both ready to move in apartments and new launches has been robust across our projects in Mumbai".
Prominent factors that have made Indian real estate more lucrative for NRIs
RERA has brought uniformity and transparency in the real estate sector in India by empowering buyers to know every detail of the project they look forward to investing their money on. The regulation protects the interests of both buyers and developers.
Developers are keeping up with the International trends and standards while developing projects. They take proper care of the safety, security, amenities, location, and various necessities of the buyers. The quality of the product is never compromised.
Innovative real estate offerings such as concept-driven projects, branded lands, mixed-use development, and luxury properties have contributed to making Indian real estate more attractive to the NRI audience.
The digitisation of real estate has resulted in ease of communication, quick response, and transparency on paperwork when buying a property. Another significant facility introduced for NRIs is the remote registration of land to give them a hassle-free experience.
The real estate investment in India is no more restricted to five or six major cities. The government's initiatives in infrastructural development of Tier 2 and Tier 3 cities in the country have given NRI buyers a wider approach to their investment plannings. Property buying in Tier 2 and Tier 3 cities is now equally viable and relatively cheaper.