Real estate has long been considered a sound investment and for majority Indians, there is an emotional side to home ownership.
The Covid-19 pandemic has disrupted economies the world over and India is no exception. Despite several challenges faced during the last two years, the Indian real estate market seems to be thriving. The reopening of the property markets in India has led to an increased interest in buyers. One segment of clientele that contributed significantly to the real estate market’s growth is the Non-Resident Indians (NRIs). Thanks to the revised real-estate market regulations; making the whole process convenient.
A recent report by Wisebiz, India’s leading Real Estate Market Research firm states that demand for residential properties has surged due to increased urbanization and rising household income. It further stated that NRIs have invested $13.3 billion in the Indian real estate market in FY 21, as against the earlier estimates of $13.1 billion. India is among the top 10 price appreciating housing markets internationally.
According to NITI Aayog by 2040, real estate market will grow to Rs. 65,000 crore (US$ 9.30 billion) from Rs. 12,000 crore (US$ 1.72 billion) in 2019, and in India it is expected to reach US$ 1 trillion in market size by 2030, up from US$ 200 billion in 2021, and contribute 13 per cent to the country’s GDP by 2025.
The end of lockdowns and the re-opening of travel, along with favourable financing conditions have prompted NRIs to invest heavily in the Indian real estate. For NRIs, real estate investment brings in a plethora of opportunities. Let us look at the key factors that are driving sales and paving the way for buyers to invest in Indian real estate market.
With the Indian government becoming friendlier towards foreign investors and the Reserve Bank of India (RBI) and Securities and Exchange Board of India (SEBI) formulating several policies and guidelines for encouraging Foreign Direct Investments (FDI), NRIs are driving their investment focus towards India.
Reforms such as Goods and Services Tax (GST) and Real Estate (Regulation and Development) Act (RERA) have brought in transparency and heightened the confidence of buyers. NRI buyers now get a more simplified format of engagement and trustworthy developers and properties currently registered under RERA.
The low rate-of-interest of home loans is an added advantage. The NRIs also get an indexation benefit for properties held in India. For instance, immovable properties held for more than 24 months is treated as long-term capital asset and obtain an indexation benefit with simplified taxation at 20 per cent. The Income-tax Act of India also allows certain tax deductions under Sections 80C and 80TTA.
Besides lower home loan interest, favourable currency movement, and transparent regulations, technology too has played its part in enabling NRIs to invest in India without being physically present, given the virtual tours organised by the developers, digital inspection of the property layouts, following paperwork procedures all at the click of a button.
In addition to the above reasons, a paradigm shift in the economy during the last few years is a growth booster for India. The Indian economy as of today is above 2 trillion dollars. It is to be noted that the investor demographic reflects age group of 55 to 70 years, looking to having a home for themselves in their retirement years, while the youth of age group 35 to 45 years are investing for profitable returns as well as for their families back at home. It is safe to say that the Indian real estate sector will see steady growth in the coming days, with NRIs contributing to its success story.
Chintan Vasani has also been active with the recently organised Real Estate Expo by Brihanmumbai Developers Association (BDA) an affiliate of NAREDCO West in association with News Giant Mid-Day. Chintan says “BDA is one of the most active Real Estate Associations representing developers who are into redevelopment projects in MMR. With the expo we had a Real Estate conclave covering six power packed sessions attended by over 5000 audience and streamed live to social media for people to join virtually. Very recently Chintan had been invited as a Real Estate Panelist on ET Now News channel and enjoys writing articles on Real Estate and has featured in Deccan Herald, Asian Age, Mid Day and many more. Chintan has been awarded as “Economic Times Young Achiever of the Year 2020 in Real Estate and Finance”.
In mid 2020 Wisebiz Realty launched “WISE X-Change”, India’s first Real estate E-Talk show where Chintan candidly interacts with real estate industry leaders not just about their work but also their vision.
Chintan is a strong advocate of sustainable and conscious living. With Wisebiz Realty, he wants to create the legacy of delivering superior quality and yet build the category on the pillars of responsibility and sustainability.
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