Real estate has been a favourite industry for investment. People from all backgrounds and professions are investing in the real estate sector in India. Indian real estate is booming due to many beneficial factors for investors including low home loan rates, great offers, availability of houses in the market and attractive pricing.
NRIs usually invest in a property with the primary motive to either have a high ROI or use it for rental. However, with the corona outbreak and lockdown, many NRIs realized that you must have a house in your home country to settle in future. Thus NRIs are actively investing in residential properties after Covid.
Real estate is the biggest asset for the NRI community and we are going to see increased interest in this segment from overseas investors. According to a Real Estate Vision 2025 study by CII-Anarock, 38% of NRIs have booked properties in India after the covid-19.
There are many factors which enabled NRIs to invest in real estate after covid-19.
- As the pandemic struck and lockdowns were imposed across countries, the urge to own a house in their home country surfaced among NRIs.
- Increased transparency and eased investment norms
- The recent depreciation in the Indian rupee
- Low property rates, stricter regulatory measures, and enhanced consolidation in the sector
- Virtual tours of properties to digitally inspect the apartment, process documents, initiate paperwork, etc.
According to a recent report, there has been an increase of 254% in inquiries from NRIs for ready to move in homes since March 2020. NRIs are looking for ready to move in projects offering top amenities and suitable for work from home culture. NRIs are also focusing on credible real estate developers with a healthy and proven track record of delivering high quality projects on time.
Growth in NRI investment in India post Covid
According to a report, NRIs have invested $13.1 billion in the Indian real estate industry in 2020-2021 and this rate is growing by 12% and will reach $14.9 billion in 2022. Low prices, favourable currency movement and technology have played a major role in enabling NRIs to purchase property in India digitally without being physically present.
Residential Investment Over Rental property
NRIs have been known to invest in rental properties in India. We had corona breakdown in 2020. This made NRIs realize the value of having a home in their home country with the goal to settle in the future. Many companies have offered permanent work from home for their employees, this makes it easier for NRIs to live in India freely.
Uprising In Luxury Housing Segment
The work from home culture has increased the demand for bigger and luxury homes in India. NRIs are looking for spacious, open, green, and contemporary features like pools, EV chargers, contactless entry and other all necessary amenities such as health and wellness amenities, nearby supermarkets, hospitals and schools, connectivity to airports and safety.
Friendly Norms By Government
The real estate market recovered very quickly after the Covid-19 breakdown and we saw remarkable sales in 2021. The rise in sales was aided by friendly government norms, slashing stamp duty and interest on home loans, and depreciation in the Indian Rupee that has increased NRI’s investment in real estate.
Conclusions
We are seeing a huge uprising in the real estate industry from NRIs after Covid-19. If you are still wondering, is it really an ideal time for NRIs to purchase property in India? The answer is – YES! The fact that the Indian currency has seen recent depreciation is one of the major reasons to invest in the Indian real estate market. Less price – higher ROI, more transparency and friendly government policies – it’s an apt time for NRIs to invest in the real estate market in India.
