Real Estate is now the second most significant industry in India after Agriculture in terms of its support in the GDP of India that is estimated 6% to 6.5%. Residential property development encompasses a huge share of our Indian Real Estate market including commercial space like shopping malls, hotels and hospitals as well.
Investments in the real estate might not be the thought of most of the people right now, as the Novel Coronavirus dramatically distresses lives, societies and industries across the world. However, after we get the regularity and normality in life, NRI interest in India’s real estate sector is likely to increase. A variety of factors give us reason to believe so. Traditional real estate did not seem lucrative enough; the Coronavirus-induced crisis could force the NRIs for a rethink.
Indian real estate- an opportunity for NRIs
Real estate sector has at all times enticed the NRI community to Indic. This let them think of coming back to India or invest in a property in their home country at least. The current situation gives the NRIs an ideal opportunity to secure a lifestyle in India that they are accustomed to.
Reasons why NRIs would invest in Indian real estate
Security of buying a new home in India
Currently, India has set a benchmark among all European countries, how to fight such critical situations. This eventually, drags the attention of NRIs to return to the home country with a good investment opportunity.
Erosion in the value of other investment options like gold and equities
Due to a noteworthy fall in the value of other common investment opportunities, the star of Indian real estate is shining high. It has become a booming sector to be invested in place of other alternatives for a better profit prospect later on when the proclaiming pandemic would meet its destruction.
Low-interest rates by banks
This could be a well-intentioned reason for the investment in Indian real estate by NRIs. All those who prefer FDs as an investment policy would regret over getting lower interests rates.
Banks have also lowered the interest on fixed deposits, severely reducing the profits on savings. India’s largest bank SBI is contributing an interest between 5.5% and 5.9% on FDs. ICICI Bank is also contributing interest of only up to 6% on fixed deposits.
Furthermore, due to prevailing COVID-19 pandemic, cheaper home loans, and property loans are available. Low interest on such loans is making an investment in Indian real estate more affordable for the NRIs.
Depreciation in the value of India Rupee
As evident in the current scenario, the current GDP is not on a progressive path. Resultantly it is making the Indian rupee fall in value over Dollar. Hence, the NRIs get a great opportunity to invest their savings over the property which would prospectively provide better returns.
They would rather find the purchase much more affordable compared to the previous year.
A safe investment option
Investing in properties is undoubtedly a better and safe option for all the potential investors owing to the current situation. It is furthermore a valuable investment for the long term. The most auspicious sectors to be invested are commercial complexes as well as luxury housing units.
COVID-19 is going to have a thoughtful impact on the economic situation of every sector. However, real estate could see better repossession, due to the variety of housing units available in the market.
NRI investors would find a good mix of ready-to-move-in luxury properties across India’s nine prime residential real estate markets.
Real estate market would undoubtedly experience an upsurge shortly due to growing job prospects. After such a strong battle with Corona Virus, and expending every possible effort, the Indian government has been introducing several stimulus packages to unlock the huge potential of the real estate industry.