NRI real estate investment in India
NRI real estate business is also on the rise in India. Recession had negligible impact on this sector. Therefore, the sector is opening up more and more investment opportunities for both domestic as well as foreign investors. The real estate sector is extremely a profitable venture, as the profits of investors have almost doubled or have derived 100 per cent profits in the residential segment. The preferable time horizon for investment in real estate is four to seven years for better returns. The industry is popular for providing the second largest employment just after agriculture. One of the major reasons for this development is the policies taken by the Government of India.
Reforms initiated by the Indian Government :
The Government including reserve bank of India (RBI) and Foreign Exchange Management Act (FEMA) has liberalised the rules and regulations for the NRIs to make investment in real estate. India has emerged as a top-most favourable destination for foreign direct investment (FDI) in the world with 100 per cent relaxation of FDI regulations in real estate. The Government of India has now allowed international and domestic companies to operate real estate funds through private equity funding. RBI has also decreased its rate of interest in the home loan division. Nowadays, real estate investment in India is more productive and revenue generating in comparison to other businesses. India is a safe investment destination for real estate sector with assured returns of 10 to 12 per cent.
- India is now the 5th largest economy in the world and ranks above the UK, Russia, Italy and France
- The GDP rate is the 3rd largest in the entire Asian continent
- As compared with the emerging nations, India stands as the 2nd largest Given are some facts and figures in the Indian real estate sector:
- If you look at the anticipated size of the organized real estate sector in India, you'd find that it accounts for $12 billion out of India $600 billion economy. When you compared it with mature economies, it's just 2% less.
- Every sector of the Indian economy has gained some capital gains due to the relaxation of FDI rules. The guidelines and norms are being reworked and liberalized by the government for getting the investments through FDI. This has attracted a lot of nri investment in real estate as they are more nri friendly.
- The Indian real estate sector has the potential to touch $90 billion in the coming 10 years.
- In the year 2005-06, nearly 5 million homes were sold and the sales in the next 5 years are expected to cross the 30 million homes mark.
- It has also been seen that buyers are mostly investing in properties such as homes in the hills, beach houses and properties in proximity to some religious centers.