Is Real Estate a Good Investment in India?

Indian Real Estate Investment

As a Non-Resident Indian, you probably know that foreigners, Persons of Indian Origins (PIO) and NRIs are allowed to make real estate investments in India. But, as an NRI it may be difficult for you to gauge the situation in India. You may be plagued by doubts like is real estate investment a good investment in India? You may be unsure about the real estate market growth rate or the trends in the real estate market in India in 2017. We are here to give you all the latest tips and information you will need to cash in on the real estate market growth rate. With the right real estate investment in India, you will be well on your way to saving up some of your hard-earned money.

Is Real Estate A Good Investment In India?

Every NRI will have a doubt of is real estate a good investment in India?  Investing in property in India should be a good idea for NRIs and PIOs. You will have a solid asset in the country. While everyone would have their own personal reasons for buying property, some of the commonly cited reasons by NRIs include:

  • For investment purposes.
  • To have their own space in India while visiting from abroad.
  • Planning ahead for a move back to India.

Further, you are also allowed to rent out property in India, which could be a steady source of income for you, provided you have made the right investments,

What kinds of Properties Can NRIs And PIOs Invest In?

Foreigners who are not of Indian descent cannot buy any property in India. Therefore, Non-Resident Indians and Persons of Indian Origin can invest in the Indian real estate market. You can purchase residential properties as well as commercial properties in India. However, NRIs and PIOs are not allowed to purchase any agricultural properties in India. This includes agricultural land, farmhouses or plantations. This set of rules has been under the purview of India’s Foreign Exchange Management Act (FEMA). It would be illegal for PIOs to purchase any kind of agricultural land under these rules.

What Are Predicted Future Trends Of The Market?

  • Urbanization: It has been predicted that India will witness an upsurge in the rate of urbanization, with South India at the forefront of this demographic shift. Therefore, the demand for all kinds of property in urban areas like Bangalore and Mumbai is likely to rise, making this a good time to invest in property in India.

  • Fresh Investments And Specializations: There has recently been a fresh spate of investments in the real estate market by companies like JLL. There are a lot of specializations in India that have been left untapped so far.

  • Boom In Business-Park Developments: India is currently witnessing a boom in the business-park developments. This will go a great way in combating the problem of India’s poor infrastructure and creating wonderful working spaces for the urban Indians.

  • Affordable Housing: It is estimated that 1 crore affordable housing spaces are going to be created in India by 2019, and is set to rise rapidly in the years to come. This vital segment has finally come to its own in India.

  • REIT Listings: The first REIT listing in India is expected to be out within a few months. REITs will be attractive to not just big institutions, but also smaller investors. They tend to provide regular dividends with a relatively less amount of risks.

Is NRI Eligible To Take A Housing Loan?

Even if you have enough savings to purchase a property in India, we would recommend that you apply for a housing loan in India. This is because this might offer you several advantages. One advantage is that most banks offer housing loans rates exclusively for NRIs. Another advantage is that in India banks operate on collateral. Before any bank will lend you the money to purchase property in India, they will thoroughly investigate the property before approving your loan. This means that they will make sure to diligently study the builder’s past record, building permits, land ownership, etc before giving you the loan. This would make sure that you get professional advice from a third party based in India before you decide to invest.

Now you have an answer to your question, is real estate a good investment in India? Before investing, make sure that you have all the information on the real estate market in India in 2017. Once you are sure of the kind of property you want to buy, you will be well on your way to making some sound financial decisions.