Real estate investment boosted by UAE NRIs

Rupee depreciation boosts investments

The value of Indian rupee has been falling in the last one year. The depreciating money has been the reason behind the Non resident Indians (NRI) based in United Arab Emirates (UAE) showing keen interest in Indian real estate. According to a recent finding, almost 90% of NRIs living in UAE are increasingly looking forward to invest in Indian real estate.

The findings show that 26.7 per cent NRIs are preferring to buy properties as added investment in India. It has indeed brought in good news for Indian economy, especially for the Indian real estate sector as investment into the real estate has increased by 6% in the last one year.

Real estate: A safe bet for NRIs

The properties that these NRIs zooming in are worth more than Rs. 1 crore. The weakening rupee have made dirham stronger and offered the NRI community the option to buy Indian properties at a cheaper rate. Investing in property market comes as one of the most safest investment options to the NRIs across the globe. Investing in Indian real estate gives them the opportunity to get high return within 4-5 years.

However, there is an added reason for the NRIs based in UAE to invest in Indian realty. As the host country does not offer them citizenship, coming home and get one’s own home becomes a natural choice for them. So, the Dubai based NRIs are looking to buy property in India not only for investment purpose, but also for personal use as well. The simplified norms of NRI investment under Foreign Exchange Management (Acquisition and Transfer of Immovable Properties in India) Regulations is also another catalyst in increased NRI investment in Indian real estate.

Metros in high demand

Top metros are the ones attracting the highest demand. Delhi, Mumbai and Bangalore are the top favoured options for the NRIs. These cities are the  most hankered after as they guarantee good returns on their investment. As the money value drops, payouts on a home loan are also cheaper than they were a year ago. It all has attributed to the rising NRI investment in Indian realty.

For the expat Indians, investing in real estate in the home country means more than a good investment option. It means asset creation for them. They look for good track record, quality and possible price appreciation in future while going for properties in India. Good brand name adds value to their investment.

The NRIs are also interested in investing in tier II and tier III cities as well as these cities offer chances of price appreciation at a faster rate due to the infrastructural development taking place. While going for tier II or tier III cities, much locations play a greater part as locations determine as to what extent prices would appreciate.

Read more real estate articles:

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Hunting houses? Tier II & III cities are the next stop

Is it the right time for NRIs to invest in Indian real estate?