As a NRI, if you are:
- On the lookout for varied investment options that will help diversify your wealth portfolio
- A strong believer in the ‘roots back home’ sentiment and are keen to buy your dream property in India
- Looking for high returns on your long-term investment plans
Look no further – The Indian real estate market is the answer to your prayers and the best bet to get lucrative returns on your investments!
Why is the Indian real estate sector such an extraordinary investment prospect for a NRI right now?
- Property prices are at an all-time low
Multiple factors contributed to a temporary lull in the Indian real estate sector bringing property prices to an all time low. A Reuters’ poll found that house prices in India are set to rise at just half the rate of inflation in 2019. It’s a great opportunity to park funds and get more value for money and better returns in a smaller timeframe.
- Enhanced spending power due to currency conversion
Truth be told, a weak domestic currency is a huge drawback for any country’s economic framework. However, the flip side of that is, a depreciating rupee affords the perfect investment opportunity for NRIs earning in stronger currencies giving them larger spending power.
- Positive regulatory environment
Historically, NRIs have exhibited some degree of reservation when it comes to investing in the Indian real estate market. This hesitation was primarily due to a certain lack of transparency, fluctuating real estate pricing guidelines, lack of clear property deeds and uncertain project completion timelines. The government has taken several steps to address and mitigate the above concerns, via real estate legislations – namely the Real Estate Regulation Act (RERA), Benami Transaction Act, and Goods and Services Tax (GST) etc.
These legislations aimed at bringing the much needed accountability and transparency in the sector encourage fair business practices. For a NRI, this instills confidence and reduces the concern due to geographic isolation from the real estate property.
- Income Tax benefits
NRIs are entitled to buy residential /commercial /immovable property in India, rent it out, transfer it, or sell it. A NRI is entitled to claim tax credit, on taxes paid by him in India and on income from immovable property in his country of current residence. NRIs are liable to pay tax on the amount of capital gains arising in India. Income Tax Act allows certain tax deductions under Section 80C to 80TTA and NRIs can use this to reduce their tax burden.
- Lucrative investment options
Contrary to an earlier trend of looking at the luxury bracket alone, NRIs now have several lucrative investment options to choose from. Affordable housing schemes along with commercial and hybrid real estate options powered by government initiatives and Real Estate Investment Trusts (REITs) are becoming a preference for the NRI investor.
- Rental Income Benefits
NRIs are entitled to earn rental income on any Indian real estate property they hold. Although the 30% TDS will be deducted by the tenant, the remaining amount can be repatriated, and the NRIs can now laugh all the way to the bank!
- Hassle free property management
An emergence of property management companies has provided a new option to NRIs – a way to ensure their properties are safely managed while generating rental income without having to personally oversee everything. A significant positive, the option of property management is encouraging many NRIs to pick up a piece of their roots.
So, if you are a NRI with a keen interest in real estate, growing your assets, or preferably both – your dream is just a smart investment away. Invest now and sit back to watch your real estate portfolio yield sizeable returns. Catch the real estate wave now to ride the profit wave in the next few years.