Where do NRIs Like To Invest In India?
The real estate market in India has seen a constant growth in recent times and property prices have touched record highs. This has led to major investments, which have helped India's economy to grow, effectively making the real estate sector the second largest employer in the country. Non Resident Indians (NRIs) have also shown a keen interest in investing in real estate.
Adding monetary value to nostalgia
Having a property in India adds to a nostalgic value and is beneficial for NRIs from the business point of view, as they do not have to put in large investments thanks to the USD to INR conversion. Research has shown that NRI investment in India will increase to 35% this fiscal. NRIs investing in property, according to a recent survey, are eager to invest in cities like Delhi-NCR, Chandigarh, Ahmedabad, Pune, Mumbai, Kolkata, Bangalore, Hyderabad, Dehradun and Chennai. These NRIs are mostly from countries like Australia, UK, Canada, Middle East, the US, Singapore and South Africa.
Top Indian cities for realty investment
When it comes to real estate in India, NRIs are most interested in investing in Bangalore. Whether the reason behind the investment is the thought of settling down in future or for reselling, Bangalore is a hot favorite owing to the constant boom in the IT industry in the city, which is home to major IT companies, including the top MNCs of the world.
Close on the heels of Bangalore is Ahmedabad. NRI's prefer to invest in properties in Ahmedabad because the city has had a stable growth in both commercial and residential projects In India and also because government rules are clear and accommodative when it comes to investments by NRI investment in real estate in India.
Owing to the ever increasing IT culture and an almost perfect weather throughout the year, Pune stands at third position in terms of interest of NRIs in real estate market in India, since 30.5% NRIs prefer to invest there.
Another technologically driven city, Chennai has also been on the radar of a good 28% of NRIs looking to invest in properties here.
The top holiday destination of India, Goa, is not far behind – 23% of NRIs want to invest in properties in the vicinity of the beautiful beaches of Goa.
Compared to these cities, Delhi figures in the sixth position in terms of interest, which is a big surprise, despite it being the national capital.
Local stakeholders inspired to provide better facilities
Significant investments from NRIs also means profits for top real estate companies in India, which put in extra efforts to reach out to probable investors. Property shows and exhibitions are held almost exclusively for that purpose.
Government benefits
The Indian government has also made sure to woo NRIs to invest in residential projects in India, as rules of FEMA (Foreign Exchange Management Act) and the Reserve Bank of India (RBI) have made investing in India easier for NRIs. There are also exciting offers to help them earn profits. Tax implications are also eased as the interest on home loan is liable for deduction from NRI's taxable income, that too without any upper limit. NRIs looking to invest in ongoing projects in India, especially in the aforementioned cities, can expect good returns on investment.