Reliability, lower fees make property investment a good bet for NRIs
Here are some factors NRIs should consider when investing in the Indian property market
Dubai: Lower fees, a strict RERA law and tax incentives are some of the reasons why investing in the Indian property market is a good bet, a top Indian businessman said on Saturday.
Speaking to Gulf News at the India Property Show, Paras Shahdadpuri, Chairman, Nikai Group, said ease in outward repatriation rules have made things simpler for NRI investors.
Excerpts from an interview:
Where and why should NRIs invest in the Indian property market in today’s time?
This is a very good time to invest in the Indian property market. The pandemic surely brought the prices slightly down, but now the markets have picked up pace and are close to touching the pre-pandemic levels.
All the cities for that matter are seeing a boost, whether it is metropolitan or Tier 2 and Tier 3 cities. After living abroad, NRIs have started investing in properties in these cities to settle down with their family. This will further bolster India’s property market as a whole.
People are not likely to lose money in the real estate sector. Another good reason to invest is the running rental income.
What are the factors that one should consider when investing in real estate in India?
The most important factor is the reliability of the developer. If the developer has a reputation and is trustworthy, it will come a long way for the investor.
Trust is an important factor. Thanks to RERA, the money is kept in escrow and is released as the project progresses.
Are there any incentives for property buyers?
Fees have been reduced as much as 50 per cent. That is encouraging the diaspora and particularly the Indian investor to invest in India because the cost of registration and other things have come down. Some states have reduced stamp duty, which is helpful. The income tax department gives a rebate to the people who have invested in their first house. So that supports the investor.
Which cities have a strong NRI interest?
Bangalore, Hyderabad, Chennai, Mumbai and NCR have always topped the list. But the other cities are catching up with this trend. Now, Ahmedabad is a very progressive city, lots of projects are coming here. So, investors are now keener to go to Ahmedabad.
We are seeing a similar trend in Tier 2 and Tier 3 cities. Earlier we had known only Delhi, Mumbai, Chennai and Kolkata but now there are so many cities that are attracting investments from the Indian community.