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Posted On April 17, 2019

Best Time For NRIs To Invest In Indian Real Estate


Best Time For NRIs To Invest In Indian Real Estate

Real estate has always been a lucrative option for people to make large investments. This is especially true in a developing country with a large population like India. The excessive space crunch coupled with the ongoing construction projects makes real estate in India one of the major selling points.



This is especially so because Indians have only two avenues in which they can increase their wealth in a short span of time. One of them is real estate that is a part of the immovable property whereas the other one is gold that is a part of movable property. Both of them are important and prevalent among Indians even in modern times.



However, the most surprising part of this is that many NRIs who live in different parts of the world have also started to invest in Indian real estate too. This shows the high level of popularity of flats in India. This article helps you understand why this is the best time for NRIs to buy flats here. Many of them also buy commercial spaces in addition to residential ones. After reading it, you will know the advantages that it brings to these investors from overseas.



Read on to find out why it has become lucrative for NRIs to invest in Indian real estate in current times.



1.     Alluring Prices



The prices of real estate have been falling in recent times. Earlier, NRIs used to invest only in luxury apartments but now they have started diversifying their interests. They now mainly focus on investing in commercial spaces as they are more lucrative and can bring higher returns on investment.



This clearly shows that NRIs have begun focusing on their long-term investment decisions rather than just focusing on the genre of the real estate. This is good news for builders and developers in Kolkata who can capitalize on this change in tastes. This is how alluring prices are playing a major role in making NRIs invest in real estate in India.



2.     Special Discounts



The best part about Indian builders and developers is that they offer NRIs with special discounts that go a long way in attracting them to this diversified market. These discounts are available to them in both the residential and commercial segments of the market. They even provide them with incentives for buying the property immediately. This is especially true for 3 BHK apartments in B.T. Road Kolkata.



The main reason behind this is that these developers have inventory that was under construction but has not yet been sold till now. They offer discounts to NRIs to clear out this unsold inventory before launching new projects.



There have been many acts like RERA that have made investing in real estate much safer as the risks that are generally associated with it have been reduced by the curtailing features of this act. Many NRIs living abroad don’t buy property in the places where they work so buying a new house in a lucrative city like Kolkata is an extremely sound investment by them.



3.     Prospects For Investment



Currently, there are very good prospects for investment in real estate in India. This is especially true for NRIs who want to buy a new home in Kolkata. Kolkata is the best place for the appreciation of property. The last decade has seen a tremendous rise in the prices of property in Kolkata.



Then there was a lull in this rise in prices and now it is the best time for investing in a new house here. This is because there are chances that prices will rise again in the near future. So this is the best time for them to invest in real estate for the time being.



NRIs have also started to invest more in commercial properties as opposed to residential ones. The main reason behind this is that they have a much longer lease period and you get a fixed and regular amount at the end of the month. Another thing that you must keep in mind is that commercial spaces have the added benefits of not just the building but the land too. This clearly reflects the amount of intrinsic value that it possesses.



4.     REITs And Its Benefits



Apart from Kolkata, there are also other Indian cities where NRIs have started investing a lot of money. These include Bengaluru, Pune and even Gurgaon. These locations are also lucrative as you can pay a lesser amount while buying the flat and get a much higher return after selling it at a higher price. This mainly happens because of the high property appreciation of these four cities.



Large corporates have great demand for commercial spaces. Hence, commercial spaces have reduced to nearly half of what was available earlier. In the premier cities of Bengaluru and Pune, the vacancy of commercial spaces has even been reduced to levels as low as single digits.



A new measure that has recently been launched is the Real Estate Investment Trusts or REITs that have helped in raising the levels of investment in commercial properties. As opposed to this, residential properties have started to remain unsold due to extremely high prices making them affordable to people from most sections of society.



This has led to high levels on pileup of inventory and a reduction in sales of these flats. This prevalence of stagnant prices has led many NRIs to switch over to office spaces as they are now giving much better returns.



Thus, the above factors clearly show that this is a golden opportunity for NRIs to make lots of moolah if they decide to invest in real estate in upcoming residential projects in Kolkata. All you need to do is check for trends in a price change, developments in commercial parameters, social setups and physical infrastructure before making in any large investments.



So, it is clear from this article that this is the best time for NRIs to invest in Indian real estate especially in the Indian cities of Kolkata, Bengaluru, Pune, and Gurgaon. They should never let this chance of a lifetime slip out of their hands and make hay while the sun shines!



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