NRI Real Estate Sector – Much has been said and written about India’s rift with GDP, a dismal 4.5, the lowest in the last six years. The real estate industry has been affected by the same. However, the good thing was that despite the slump, the real estate sector managed to break even by being stagnant, balancing the highs and lows in the year 2019. Although the figures spell doom, as per the sources, the benefits of all the amended and introduced laws in the sector is sure to start benefiting from 2020.
NRI Real Estate Sector –
To recap, the government of India introduced quite a few attractive laws in 2019, such as an additional Rs 250 billion investment fund for funding projects that have been stuck for quite some time now, along with significant reductions in corporate taxes and affordable housing schemes. All of these combined are now projected to benefit all those who are eyeing property purchases in the new decade, starting in 2020. Out of these, NRIs or Non-resident Indians to are set to benefit by a huge margin. This is the exact time to make the right investment in the real estate sector, especially for them.
The rupee’s tumbling value is bad news, yes, but if one looks at it from the perspective of NRIs, especially the ones in the Gulf nations, their inflow of income is far larger than the outflow, and thus, with a considerably lower value of the rupee. Not only this, for those NRIs who are looking to purchase commercial properties to incur either rental income or establish their own business, too will be incurring good profits due to a steady rise in returns. Additionally, the additional funds of Rs 250 billion will ensure that with good advice on fiscal matters, NRIs will be able to get their stuck real estate projects out of their hibernating state.
If one looks at all these scenarios and the benefits that NRIs can incur, in totality, then the escalation is projected to happen more in the second half on 2020, instead of a rather lull first half. The major areas of interest for the NRIs in real estate, however, are commercial working spaces, coworking trends, co-living spaces, and even logistics and warehousing spaces. The areas that are most appealing are in Western and Southern India, such as Mumbai’s Metropolitan Region, Central Suburbs, and even Thane. Bengaluru too is becoming a hot favorite, especially South and East.
Another major reason for NRIs investing in Indian real estate is the fact that no matter the state of the economy, the worldwide recession has still not exercised its full attack in the country. Even though we are not doing amazingly well, we are still reasonably better off.
It looks like India is shrugging off the economic slump, and the real estate sector is leading the way.