With the rupee witnessing a major fall against the dollar in recent months, thousands of non-resident Indians (NRIs) are looking to take advantage of the drop by investing in property back home.
The number of enquiries for investments in India’s commercial and residential real estate, particularly from the region have risen, says Rajat Kaushik, co-promoter and General Manager of Sacred Lands, the UAE’s newest bespoke property brokerage firm.
Diversified portfolio
Sacred Lands is backed by Himanshu Batra and Kaushik, veterans of the real estate industry, who have spent more than 20 years in sales and marketing of property projects in multiple countries, including India and the UAE.
With a diversified portfolio, which is painstakingly picked for compliance in line with global norms of design and quality, and a focus on turnkey delivery services, Sacred Lands’ projects are the gold standard with their laser focus on sustainability and green norms.
We help investors create a strong real estate portfolio, which could be a mix of land, commercial and residential projects. Our vast experience allows us to offer a deep insight into the market dynamics, while our expertise with legal documentation helps them make the right choices.
Launched in March, the company has already achieved a gross transaction value of Rs45 million (Dh2.1 million), and net revenue of Rs16 million (Dh736,071). “We have earned the trust of our existing investors due to the exemplary services we offer,” says Kaushik.
Their end-to-end NRI investment services, from booking to possession, ensure that everything works seamlessly – from customer care to loan assistance, paperwork, special payment plans, and unbeatable offers.
“We help investors create a strong real estate portfolio, which could be a mix of land, commercial and residential projects,” says Himanshu Batra, co-promoter, and Director Sales and Marketing at Sacred Lands.
“Our vast experience allows us to offer a deep insight into the market dynamics, while our expertise with legal documentation helps them make the right choices.”
We have earned the trust of our existing investors due to the exemplary services we offer. Historically, whenever the rupee has depreciated, NRIs have preferred to invest in real estate as that is the most secure asset.
Preferred cities
To many of their NRI clients, investing in India makes perfect sense. In the last year, Indian real estate was a $13.1 billion strong market, and it is expected to grow by 12 per cent in 2022, says Kaushik. “Historically, whenever the rupee has depreciated, NRIs have preferred to invest in real estate as that is the most secure asset.”
Interest from NRI investors is skewed towards Tier II and Tier III markets, in locations that are still developing. According to Batra, “as Tier I cities have already seen an appreciation and are at their peak, investors try and enter the developing markets at the right time.”
Kaushik says Tier II and Tier III markets call for smaller investments. “If the investor decides to sell the property, they earn almost double the amount of the purchase price. Besides, if they think of settling down in India or even using the property for short periods like a vacation, they pick destinations that are quieter and rich in natural beauty.”
Infrastructure catching up
Tier II and Tier III cities are also fast catching up with metro cities in terms of infrastructure. “Digital India and Startup India campaigns have accelerated urban transformation in these smaller cities,” says Batra.
“Several industries have established outposts or centres and several more are planning to do so. Infrastructure such as educational institutions, shopping malls, hospitals, and cinema halls have followed. Better scope of appreciation and rising job opportunities are attracting millennials to these cities.”
Sacred Lands has cutting-edge properties in Tier II and III markets for investors across all three markets. While markets such as Gurgaon, Mumbai, and Bengaluru continue to deliver huge profits, destinations such as Rajasthan have also shown good returns “We have been able to provide four to five times of the investment in the past three to four years. Some of our properties have also yielded 10-12 per cent annual return,” says Kaushik.
Tips to keep in mind
NRIs are very mindful about the kind of property they are investing in. Kaushik lists out some of the key metrics that NRIs focus on when evaluating the investment worthiness of a property:
• Nature of the property: Is it commercial or is it residential? Is it a built property or land that needs to be developed? In the case of commercial property, will it be a shopping mall or an office space?
• Transactions: Consider if you are able to invest in Indian currency, using an NRE or NRO account from any Indian bank or FCNR deposit account to avoid forex fluctuations.
• Home Loans: Look to avail a home loan as RBI has mandated banks and housing finance companies to offer mortgages to NRIs.
• Tax benefits: Take advantage of tax benefits that accrue to NRIs when they sell their property after three years of purchase, required for long-term capital gain.
• Verification: Ensure transparency and impeccable paperwork. Do thorough background check on the owner of the property, developers, real estate agents and builders.
Financing support
Home loans also figure high on the must-haves, a service Sacred Lands has expertise in. “NRI investors tend to purchase the property outright with flexible payment plans, which help reduce the liability of taking a loan,” says Batra. “Most invest in off-plan properties as against ready-to-move ones. There is an ease of entry due to down payment as low as 5 to 10 per cent, developers offer post-handover two to five payment plans, there is a lower price advantage, and they receive a rental income.”
Most NRIs invest to earn a profit, according to Sacred Lands. However, some may be looking to settle down in India and choose residential over commercial properties. “This doesn’t mean they cannot make a profit. The profit will be from good rental income,” says Batra.
To know more about Sacred Lands, visit www.sacredlands.co
