Owning a home in one’s own motherland is a desire that most NRIs have. It therefore gives them a sense of belonging to the country and becomes a way of staying connected to one’s roots. Often a home in the motherland becomes a motivating factor to return to the country. Recent few years have seen a remarkable increase in the number of NRIs investing in Indian Real Estate. This transformation can be attributed to several changes in the political climate and flexibility of laws pertaining to NRI investments.
Stability in housing prices and favourable government policies has led to a substantial increase in the number of NRI’s investing and buying properties in India. Special marketing campaigns and property expos in places that have a considerable population of NRIs has become a common practice. This has helped in offering a more personal feel of the project and most importantly, the builder.
Another crucial reason is the depreciation of Indian Rupee against the U.S Dollar. This has also played a crucial role in renewing the interest of the NRIs in Indian real estate. According to property consultancy major CBRE’s South Asia Head (Residential Services) A S Sivaramakrishnan, NRI’s contribute to around 8-10 percent of the total housing sales across India.
With the government relaxing its stand on the FDI( Foreign Direct Investment) has enabled the NRIs to get tax exemptions that they were not liable for initially. This relaxation in the policies has motivated several NRIs to venture into Indian real estate as they no longer feel alienated.
The above mentioned changes have opened newer avenues for the NRIs and one can expect that the trend to invest in India will only grow stronger with each passing year.