Vital Growth Drivers for Indian Real Estate
The driving force for most NRIs to invest in the Indian real estate market is the need to keep in touch with their roots. They may have moved away from their motherland for educational, employment, or business purposes but they still have an emotional connection with their homeland. It may also prove to be a beneficial investment if they ever decide to move back to the country. With the recent economic and regulatory reforms such as GST (Goods and Services Tax) and RERA (Real Estate Regulatory Authority Act) a certain level of transparency and ease and efficiency has been brought about in the real estate business, thus attracting more and more NRI’s to invest in Indian real estate. With growing infrastructure and the falling rupee, the government has introduced numerous measures that are meant to catch the eye of NRIs looking to invest in the Indian real estate. This I called inward remittance, and India ranks at the top of the global list for a huge rise in inward remittance. There have been close to $79 billion inward remittance investment in the Indian real estate market.
The Successive Annual Rise in India
Non-resident Indians have always been a major segment of investors in the Indian real estate market. Once a very limited contributor to the economy, they now account for a sizeable part of the Indian housing demand. This rapidly growing concept leads to confidence levels of NRIs which reflects the transparency and clarity post-implementation of RERA, GST, and Housing for All by 2022. This section of the market is growing by 5% on a year on year basis and according to the reports of the World Bank has also predicted a rapid rise of NRI investment in India. As per the recent research data found in the NRI buying patterns over the years, NRI investments are expected to see a rise of $13.1 billion in the financial year 2021 which is a steep growth from $6 billion in the financial year 2014, growing by a little less than a CAGR of 11%. The major countries from which these sources of investment are expected are USA, Canada, GCC, UK, Singapore, Malaysia, etc. out of which NRIs from the GCC region constitute for a huge chunk of investors, almost 42% of the total investment flow since the Gulf region does not provide citizenships to international residents and therefore the Indian citizens living there only find it suitable to invest in a home in India. Interestingly, NRIs are not buying for end-use, but many are entering the market with a pure-play investment purpose.
With Grhasara’s expertise and experience in the NRI real estate investment market, our team of expert advisors and legal consultants are just a click away to help you make smart property decisions. It has been our constant endeavour to provide customized, tailored solutions to your real-estate investments. We are redefining the way NRIs discover, purchase, and manage their properties in India. Contact us today to make the best of all opportunities available.