How does post-Covid market provide NRI home buyers significant advantages in India?
Since old times, real estate has been the favorite asset segment for domestic and international investors. Most people also desire to own an abode in other nations to establish an international base for their business. The pandemic interrupted the purchase, rental, and leasing trends of Indian real estate. According to a report of CII- Anarock, Indian real estate vision 2025, the falling INR currency, softness, and real estate prices have attracted a lot of NRI investment. And after the international lockdown norms were released, there has been a whopping increment in purchasing real estate properties in India.
But the big question is, is property investment in India recommended for NRIs?
Of course, yes!
The falling currency of INR against USD is a significant factor in smoothing NRI investment in Indian real estate. Also, the rise in demand for real estate in the country proves to be a lucrative investment opportunity for NRIs. It is further enhanced by RERA formation and properties and developers who are registered under it.
Furthermore, India is reportedly witnessed as a central production hub, and NRIs looking ahead to tap into this opportunity may plan their next real estate investment move here.
It is safe and profitable for NRIs to purchase real estate in India, especially in the ready-to-move-in segment.
But before you look out for properties in Chennai or Pune, here are the key factors that you should know that drive sales for NRIs.
Residential property purchases
During the pandemic, most organizations facilitated work from home for their workers, but the scenario hasn’t changed much since then. Irrespective of whether you plan to purchase from properties for sale in Chennai, you should look at the trends:
Self-use rather than renting out
NRIs are conventionally known to buy properties for rental purposes. But, the pandemic served as a wake-up call for them, and they realized the value of owning a residential property in the origin nation to have a secure home for settling down sometime in the future. Most companies have also offered a WFH or hybrid work model. Hence, purchasing real estate is a rewarding and sentimental aid for NRIs.
Adding to the growth of luxury housing
Covid increased the demand for bigger homes. NRIs prefer greener, spacious spaces with features like EV charging points, secure and contactless entry, proximity to markets, wellness and health centers, and malls, and connectivity to airports and other means of transportation. Also, ready-to-move-in properties with good interiors are preferred by NRIs.
Regulations adding to the trend
Post the pandemic, the real estate industry successfully deflected the Covid-19 curveball, exhibiting noticeable resilience, which has set the background for a promising revival. These were further supported by state government regulations, such as slashed stamp duty, the RERA deadlines extension as an Atma Nirbhar Bharat package, reduced interest rates on home loans, easy investment norms, and finally fall in the Indian Rupee. Additionally, this worked as an excellent opportunity for NRIs to look out for long-term investment in India.
Technology played a vital role in bridging the gap between NRI and sellers. Now developers offer virtual property tours, simultaneously allowing purchasers to digitally inspect the property, process documentation and online paperwork, and purchase without being physically available. The arrival of smarter home designs with environmentally friendly features has contributed to the hype.
According to a 360 Realtors report, the amount of investment by NRIs was $13.1 billion in FY21, and the inflow increased by 12% in FY22, reaching $14.9 billion.
It is improbable that the risk of the third wave will prevent the NRIs and investors from investing. More and more people are vaccinated and well-informed about uncertain times. Taking notes from the situations in 2020 and 2021, the real estate industry has overcome challenges by using tactics to attract buyers and investors. Given the significance of owning a house during the pandemic, the rise in NRI activities projects a positive outlook for NRI investment in Indian properties in 2023.