What are the top reasons behind NRI investors' real estate investment in India?

With the rising importance and value of the real estate market in India, more and more NRI investors are looking for real estate investing opportunities in India. Their interest can arise from various factors such as familiarity with the market, rising Economy, diversification etc.

NRI investors real estate investing

NRIs are Indians by birth but do not presently reside in India. These individuals may not live in India but are interested in investment opportunities present in the country. One such opportunity is real estate investment. The Indian real estate market received over 7.8 billion US dollars in investments in 2022. The investments are expected to rise this year as well. The question that baffles the minds of Indian investors is the reasons behind NRI’s investing in the real estate market in India. Let us try and understand the various factors contributing to the NRI’s interest in the real estate market of India.

Familiarity with the Indian real estate market:

Even though these individuals are not currently residing in India, they know about the Indian real estate market. Being brought up in India, they can understand the complex dynamics of the Indian real estate market. They might also have connections in India, such as family or friends, who can help them while investing.

Growing Economy:

The Indian Economy is one of the biggest growing economies in the world. With its growth, it attracts investors across the world. The rise in the value of the Indian market results in the interest of NRIs in the real estate market of India.

Potential for higher returns:

The Indian real estate market is a growing market, with prices of real estate increasing every day. These increasing prices create a potential for higher returns. Higher returns are one of the major factors which compel NRIs to make real estate investments in India.

Diversification of Portfolio:

Real estate can be a good addition to the portfolio of investments for NRIs. To ensure they have multiple investments, they are readily looking for opportunities to make real estate investments in India. Diversifying their portfolio allows them to mitigate their risk factor and increase their chances of making profits.

The difference in the value of currency:

For NRIs residing in countries like the USA, Europe or Canada, the value of their currency compared to the Indian currency is much more. Therefore, these individuals do not have to burn a hole in their pockets to invest in India. As the difference between the value of the currencies increases, NRIs are more likely to make real estate investments in India. 

Simplified process for purchasing real estate:

With the advent of the digital era, it has become quite easy for NRI to explore the Indian Real Estate market with a tap on their phones. Various applications can show these investors multiple options for real estate investment in India. The process of purchasing real estate has also been simplified by technology and government initiatives.

Real Estate Regulatory Authority

The presence of this government organization has increased the trust of foreign investors in the Indian real estate market. The biggest issue while purchasing a property is the transaction of money. With RERA in the picture, the process has become highly transparent and safe, contributing to the interest of NRI buyers from different countries worldwide.

Final Words

Real estate investment in India is a highly attractive opportunity for NRIs worldwide. With the rising value of the Indian Economy, the growth of the Indian real estate market is guaranteed. The presence of regulatory authorities and the advent of technology have a major impact on the investments made by the NRIs in different countries.


Related Article

Premium Articles

Union Budget