The real estate industry in India goes through an interesting phase of transition and revival. During this era, Indian land is witnessing many interests from NRI homebuyers.
The combination of rock bottom home equity credit rate, a falling rate of the Indian rupee, great offers and deals, availability of homes and never before seen pricing makes this a perfect time for home buyers
These circumstances have provided a perfect environment for NRIs to take a position inland in India.
Why is South India the well-liked market by NRI investors?
South India has always been a beautiful land marketplace for NRIs thanks to the supply of land at reasonable prices, housing across segments, higher rental yields, on-time completion of projects, and good diary of developers here.
Real estate in South India has whopping opportunities to show dreams into reality and investments into wealth. A propitious investment climate, dynamic professional class and its well-developed corporate ecosystem have added to the luster of land buying within the region.
The real estate market is experiencing a boom in recent days and is further expected to ascertain increasing demands thanks to a positive investment climate and therefore the Covid-19 pandemic.
Mid-size and affordable homes are seeing increased interest from resident Indians and young NRIs. Luxury homes, 3 bedroom, and 4 bedroom homes also are witnessing increased demand from NRIs.
During the lockdown, spacious homes have also garnered an increasing interest by home buyers due to the work from home scenarios.
Rapid Increase in NRI interests
In a previous couple of months, the interest from NRI home buyers has increased. For NRIs, the thought of owning a range in their own nation is reassuring and provides a secure haven.
The prevailing pandemic has created uncertainty within the minds of NRIs. Loss of jobs and businesses has forced a number of them to return to India. Owning a home here gives NRIs a way of safety and continuance to fall back on in times of trouble.
This also gives them a choice to withdraw to the country upon retirement or to explore new business opportunities within the region. The Covid-19 pandemic has adversely impacted global stock markets. Investors feel that land remains a comparatively stable investment option at lower risks.
Why is it the proper time to invest?
The recent depreciation within the Indian rupee has sweetened the deal as NRIs now need to distribute lesser to shop for a home.
The significant drop by property rates, stricter regulatory measures, increased transparency, and greater consolidation within the sector have together created a lucrative avenue for the NRIs to take a position within the south Indian land market. COVID-19 had a drastic impact on pricings and demand in regions like Hyderabad, Bengaluru, and Chennai.
Consumer demand has spiked in these markets as more home buyers from across India and abroad are quickly taking advantage of the prevailing conditions to shop for their dream homes.
Lower Property price & Attractive deals
Aimed at attracting new customers, developers are offering buyers a number of the simplest deals seen during a long while.
Offers like innovative payment schemes, lowest home equity credit interests, and rental guarantee have resulted in increased demand for residential land. the mixture of those exciting deals makes investing in residential properties advantageous.
Government Reforms & Regulations
The implementation of RERA has strengthened the interests and confidence of NRI buyers. RERA addresses major concerns like lack of transparency in transactions, inordinate delays in project delivery, and therefore the intent of the developers.
Currently, in India, the house loan is at rock bottom rate within the last 15 years which makes it ideal for purchasing homes. This has made home loans across established lenders more attractive encouraging home buyers and investors to take a position in residential projects.
Good Rental yields
Real estate isn’t only a beautiful asset class today but it also promises healthier returns in comparison to other investment options; Good rental yields and capital appreciations have predisposed NRIs towards residential land investments.
Rent may be a big source of income and residential properties have an enormous demand, especially in metro cities.
Going by the present trends, the industry expects NRI investments to rapidly increase within the coming months. consistent with industry leaders, the growing demand from the NRI community alongside increasing demands by resident homebuyers will help the industry stabilize and return to normalcy in 2021.
(With inputs from FinancialExpress)