Why invest in India’s real estate?
Premium properties like in US and UK
Most non resident Indians& OCIs (Overseas citizens of India) wary of investing in Indian real estate a couple of decades ago are now applying online and checking out top ranking brokers to buy homes and properties across India. To cater to the growing demand from overseas Indians, real estate companies are building properties that can be compared to anywhere else in the world. There are premium properties to suit NRI pockets and they are full of amenities not seen anywhere else.
It has become common for many NRI’s in their sunset years to spend a couple of months each year in their former homeland. To exceed their expectations, real estate companies, many of which are multinationals, are investing in land to create replicas of real estate properties found in the US and UK. The townships that are being created are integrated like they are abroad.
You can get all facilities close to your property and you won’t have to go out and look for them outside the boundary.
Funding by banks and financial institutions (Cheap & Affordable housing loans/mortgages at very low interest rates)
Major Indian and foreign banks as well as financial institutions are also funding real estate in India making it even more lucrative for NRI’s to invest in Indian real estate. They can easily build their own as well as get into the profitable real estate business that is yielding more profits than ever before. The growth has primarily been due to the rise in demand for quality properties for housing and the upswing in the hospitality and hotel industry in India.
A maor share of the FDI or the foreign direct investments is tailored to the Indian real estate sector these days. Stock prices of real estate companies are also witnessing a boom and the frequent bull runs at the stock exchanges are fuelled by massive investment in real estate company stocks. Standards of living of the average Indian has gone up in recent years and every Indian’s dream of a home is fast becoming a reality.
The Indian government is also putting in more money in real estate and many old regulations have been fine tuned to attract more money into the sector. The property tax act, the rent control system, land ceiling regulations have also been updated and made more investor friendly for people wanting to put their money into real estate. Along with domestic laws, the foreign exchange regulation act has also been made more liberal to get more people from aboard into Indian real estate buying, selling and investing.
Private equity players are also finding the real estate an excellent business opportunity as the returns have skyrocketed in the last few years. It pays to buy property in India and keep it for investment purposes. And you don’t have to wait long enough as the returns can be seen upfront in just a couple of years.
Foreign investors in real estate are expected to bring in around $100 million and they can range from small, medium to large projects across India. Even smaller towns are experiencing a boom in real estate