The Indian real estate industry has grown significantly over the past 10 years, and Non-Resident Indians (NRIs) have contributed significantly to this boom. Due to hybrid work arrangements, a desire to return to their own country, and a desire for a higher standard of living, NRIs are more likely to buy a home in India. Read on to learn more. Non-Residential Indians (NRIs) have increasingly shown interest in investing in Indian real estate. This trend can be attributed to a variety of factors, including emotional and cultural ties to their home country, favourable market conditions, potential high returns, and the evolving Indian economy. This article aims to explore the reasons behind Why Do NRIs Want to Invest in Indian Real Estate?
1. Emotional and Cultural Connection:
NRIs often maintain strong emotional and cultural ties to India, even if they reside in different parts of the world. Investing in Indian real estate allows them to maintain a connection to their homeland and preserve their cultural identity. Owning property in India gives NRIs a sense of belonging and provides them with a physical asset that symbolises their roots.
2. Diversification of Investment Portfolio:
Investing in Indian real estate provides NRIs with an opportunity to diversify their investment portfolios geographically. By allocating a portion of their wealth to Indian properties, NRIs can reduce the risk associated with having all their investments in a single country or region. This diversification strategy helps mitigate potential losses and optimise returns by taking advantage of different market cycles
3. Attractive Market Conditions:
Indian real estate has witnessed significant growth and transformation in recent years. The implementation of policies like the Real Estate (Regulation and Development) Act, 2016 (RERA), the Goods and Services Tax (GST), and the establishment of Real Estate Investment Trusts (REITs) have instilled transparency, accountability, and professionalism in the sector. These reforms have bolstered investor confidence, making the Indian real estate market more attractive for NRIs.
4. Favourable Currency Exchange Rates:
Currency exchange rates play a crucial role in the decision-making process for NRIs. When the value of the Indian rupee depreciates against major foreign currencies, it increases the purchasing power of NRIs. This makes investing in Indian real estate more affordable and attractive for NRIs, as they can acquire properties at relatively lower costs. Additionally, the potential for currency appreciation in the long run further enhances the investment prospects for NRIs