What Are the Benefits of NRI Investment in Residential Properties in India?

The Indian real estate sector has always remained a hot topic for investors throughout the world. Investors not only from India but from abroad find it to be an all-time good investment. Even with uncertainty in the entire economy, the real estate sector of the Indian market seems to be booming every year.

With gradual increase in the number of people investing in the real estate sector, the market has also seen an interesting demand from the NRI investors. With a tremendous growth in NRI investments, most of the realtors rely on NRI for the sale.

NRIs from developed countries like UK, USA, UAE and Canada are already prime investors in the Indian real estate sector. India's growing real estate sector has triggered the interest of Indians living abroad to invest in their own country as a future plan to settle here and a retirement plan.

For this reason, the investment in the residential properties has seen a growth of over 40%. A paradigm shift in the economy during the last few years is a growth booster for the country.

Benefits of NRI investments:

Source of rental income:

The real estate sector of the Indian market has a lot of opportunities for NRI investors. They can invest in many different kinds of properties and can earn a rental income. These investments can generate revenue more than the initial investment.

Long term return on investment:

Real estate investment always delivers high return values in the long run. Doesn't matter in which entity you invest; it is for sure that your investment will turn to 4 to 5 times of the principal value within a few years.

In a growing economy like India, the value of residential properties increases exponentially on a continuous basis. As a result, the price increases and a high ROI is sure.

Secure retirement plan:

Investment in real estate by the NRIs is not only a good source of income but also a good source of post-retirement income.

Irrespective of the company or entity in which you invest, the residential properties will have high value during your retirement. You can either sell it or use it for rental purposes and get a source of income.

Decreasing value of rupees:

The value of Indian rupee is falling day by day, and this increases the value of NRI investments. With the rupee touching an all-time low of almost 80 against the US dollar, the investment in real estate has become more affordable and easier.

This increase in the purchasing power of the NRI investors is a very important factor to invest in residential properties.

High interest as compared to other investments:

Traditionally people used to invest in FD, gold equity market etc. However, these investments are subject to market volatility and can even incur loss.

Apart from it, the rate of interest delivered by these investments is much lower and most of the time it becomes equal to the inflation rate. Residential properties however, deliver high returns and hence remain a lucrative investment option for the NRI.

Booming Indian Economy:

After the backdrop of the Coronavirus pandemic, the Indian economy faced many challenges and hardships. However, the pandemic is over but the economy is still struggling to grow at its full pace.

This has led to reduced prices in the residential properties and is the best time to make investment in it. When the economy will grow in leaps in the coming years, the property prices will increase.

These are some of the benefits that an NRI investor can get by investing money in the residential properties of India.

Real estate remains the top investment platform if you want to multiply your assets within a few years. India is a resurgent economy and the real estate sector is bound to flourish in the coming years.