Recent moves by the current government have given NRIs a reason to smile and made Indian real estate sector a beneficial option of investment for them. The significant impact of such norms has been arisen in the recent past with significant boost in NRI investment, which is further likely to increase in current financial year. Does NRI investment really play a crucial role in the development of real estate? Below are the impacts that clarify why Indian government is inclined in drawing NRIs attention in Indian Real Estate Sector:
1. For last 5 years, real estate in Delhi/NCR has witnessed stagnation. Although the trends have been started reversing with the new government, the people are reluctant in investing real estate sector. With pumping in NRIs investment by introducing investor-friendly policies like treating non-repatriable investments in Real Estate sector as domestic investment, the government is successful in building up the confidence of domestic investor in real estate.
2. Of course, when real estate will become a lucrative option of investment for NRIs in real estate in India, it will draw more FDI (Foreign Direct Investment) that will pave the way for overall economic development of the country.
3. With more and more capital inflows, the real estate sector in India will get a much-needed push and will reflect more growth prospects in this sector.
4. When more and more capital shall be introduced by NRI in this sector, housing in the country shall become less expensive. The prices of individual apartment in large scale projects shall be expected to be lower than a typical residential project.
5. With more NRIs’ investment in Indian real estate, the remittances from abroad will rise and tune in billions of dollars in India every year which is further comparable to India’s annual plan expenditure and thus plays a significant role in economic development of the country.
6. The introduction of more and more NRI investments in Idian real estate, curbs more skill-set from NRIs too. In case the suitable architects and designers are unavailable for the specified projects, foreign architects are hired for the desired level of expertise. With their improved abroad practice, NRIs ethically contribute literally much to the real estate.
As the value of Indian Rupee is falling against dollar turning Indian property cheaper, NRIs are eyeing real estate as a beneficial deal to invest.