The contribution of NRIs in the Indian real estate economy

Posted by Kyle Underhill on February 2nd, 2019

When we hear NRI selling property in India, we think that they want to make some cash on the side by selling their unused properties in India, but that’s not the case for everyone. A number of NRIs are actually making the property selling thing a business because India has become a lucrative industry to pump cash in.

Over the years, the contribution of NRIs in the Indian real estate economy has become a true asset. NRIs on average spend close to billion in Indian real estate, for a multitude of reasons. Some are simply buying homes because they plan to return to the roots soon enough. Some are parking their cash in Indian estates so that they can gain some appreciation, while some are starting a business in India.

All of this tells us that India has a lot of scope for NRIs, who wish to invest in the real estate. There are a few reasons for that.

The Rupee Conversion

The Indian rupee is one of the weakest currencies when compared to developed nations. The rupee fell over record numbers at the end of 2018 which gives foreign investors a great chance to make use of the opportunity. They can get better conversion rates in India, which means their money can buy more property. The sale of property by NRI is partly due to this factor. Because NRIs have their roots in India, they are in a better position to invest in India. They have the help they need to make the move.

Longer Investment

NRIs usually sought a long term investment because they’re in no hurry to make the money. They usually park funds for more than 3 years and it becomes quite beneficial from the tax point of view. The very nature of the property business is that the longer you wait, the sweeter the fruit. Therefore, it works out well for NRIs who like to wait before selling their property in India.  

Luxury Real Estate  

Fortunately, the luxury real estate of India has caught the attention of NRI selling property in India. More NRIs want the piece of the luxury cake because the magnitude of investment matches their liking.

If you too are an NRI looking to buy or sell real estate in India, you can contact Spacio Realtors, who is one of the most prominent real estate advisory firms in India for NRIs. We are ISO 9001 certified and have offered some of the biggest return on investment rates to NRIs investing in India.