Real estate is one of the most preferred asset classes for NRIs who want to invest in India. The Indian real estate sector has shown resilience and growth in the past few years, despite the global economic slowdown and the COVID-19 pandemic. According to a report by 360 Realtors, NRIs invested $13.1 billion in the Indian real estate market in FY21 and the inflow is likely to grow 12% to reach $14.9 billion in FY22 & FY23.
There are many factors that make real estate investment attractive for NRIs, such as
Favorable currency exchange rate: The depreciation of the Indian rupee against major foreign currencies like the US dollar, the Euro, and the Singapore dollar gives NRIs a higher purchasing power and a better return on investment.
Demand for luxury homes
NRIs often look for spacious and comfortable homes that suit their lifestyle and offer amenities like security, clubhouse, gym, pool, etc. The demand for luxury homes in India has increased in recent years, especially in cities like Ahmedabad, Gandhinagar, Mumbai, Bengaluru, Delhi-NCR, Hyderabad, and Chennai. These cities also offer high rental yields and capital appreciation for luxury properties.
Ease of buying process
The government has simplified the rules and regulations for NRI investment in real estate in India. NRIs do not need any prior permission from the Reserve Bank of India (RBI) or any other authority to buy residential or commercial properties in India. They can also avail of home loans from Indian banks and financial institutions at attractive interest rates.
Emotional and sentimental value
Many NRIs have an emotional attachment to their homeland and want to own property in their native place. Buying a home in India also gives them a sense of security and belongingness. They can also use their property as a vacation home or a retirement home when they visit India or settle down here.
However, before investing in real estate in India, NRIs should also be aware of some challenges and risks, such as
Tax implications
NRIs have to pay taxes on their income from real estate in India, such as rental income, capital gains, and wealth tax. They also have to comply with the tax laws of their country of residence and avoid double taxation by claiming tax benefits under the Double Taxation Avoidance Agreement (DTAA) between India and their country.
Legal issues
NRIs should verify the legal status and ownership of the property they are buying and ensure that it has all the necessary approvals and clearances from the authorities.
Maintenance and management
NRIs should also consider how they will maintain and manage their property in India when they are not physically present here. They should appoint a reliable caretaker or a property management company to look after their property, collect rent, pay bills, handle repairs, etc. They should also keep themselves updated with the market trends and the value of their property.
Why choose Shivalik Group for your real estate investment?
If you are an NRI looking for a trusted and reputed real estate developer in India, you should choose Shivalik Group. Shivalik Group is one of the leading real estate developers in Gujarat, India with over 25 years of experience and expertise in building quality homes and commercial spaces. Shivalik Group offers you many benefits, such as trust and legacy, quality and design, prime location, and customer support.
So, if you are an NRI looking for a smart and profitable real estate investment in India, you should choose Shivalik Group as your partner. Shivalik Group will help you find your dream home or your ideal commercial space in Gujarat and make your investment journey smooth and hassle-free. To know more about Shivalik Group and its projects, visit https://www.shivalikgroup.com/ or call +91-079-4020-0000.
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