Over the past decade, the Non-Resident Indian (NRI) population has rapidly grown and is further expected to grow. Some of the major factors that attract NRI investments include better social infrastructure, improved standard of living, and higher currency value. Most Indians prefer investing in India as Indian real estate market is booming with growth options. Also, they strive to own a property in their own country and thus, look out for affordable property deals.
Here are some of the reasons why investing in Indian real estate is the best investment option for NRIs:
If an NRI has an Indian passport, he/she doesn’t require any prior permission to make a property investment in India. The Reserve Bank of India (RBI) has simplified the process of FDIs to attract more investments. Transactions in Indian real estate is governed by the Foreign Exchange Management Act (FEMA).
India is one of the fastest growing economies in South Asia. With the gradual development, the property prices too, are catching up. NRIs don’t need to pay taxes on the profit earned due to property appreciation for two consecutive years. They can enjoy claims on home loans and its repayments.
Most of the NRIs who own real estate property in India use it for accommodation during their visits. These properties can otherwise be rented or leased and become a good source of income. Luxurious property generates high income in the form of rent or lease.
These are some of the factors that attract investments from NRIs in India.