5 Reasons Why Young NRIs Invest More In Indian Realty
Despite a stagnant phase that might have affected it, India's real estate remains a favourite investment destination for Non-Resident Indians (NRI). Stability in prices and favourable market conditions are some of the major reasons behind rising investments from NRIs.
In a report, Associated Chambers of Commerce and Industry (Assocham) Secretary-General D S Rawat said, “NRIs feel confident about the new government and expect more investment-friendly measures in various fields. People are more optimistic and looking for property to invest in. Both small and big developers are focusing the NRI base in the US, the UK and the Asia Pacific Region this year.”
A study conducted by Sumansa Exhibitions, organisers of the Indian property show, says, “NRIs in the UAE aged between 18 and 35 account for 43 per cent of investment in Indian real estate”. As per Sunil Jaiswal, president of Sumansa Exhibitions, “While earlier, we would see older people planning and saving to buy property, today more young people want to solidify savings in the real estate market”.
Also Read: Benefits of Investing in Indian Real Estate
Why Indian Real Estate Attracts Young NRIs:
- Owning a home in India is important for young NRIs, who are keen to settle in India in the long run. Buying a property in India helps a young NRI being rooted to his country and people.
- Investing in a property in India helps NRIs to reap regular rental returns. A large number of young NRI's are making smart investments by buying properties in India and making money by putting these out on rent. India's growing working population makes it one of the most favourable countries for real estate investment for rental purposes.
- The real estate market in India has witnessed a phenomenal growth over the past decade. According to a report by Cushman and Wakefield, India's property market will be worth $180 billion by 2020. Witnessing all these opportunities for future, young NRI's want to buy properties here as a long-term asset.
- Affordability of the properties is a great factor why Indian real estate attracts a large number of young NRI's. Due to the difference in the value of currencies, investment in Indian real estate is a lucrative option. Moreover, the increasing focus of developers to build more affordable and NRI-centric projects has helped young NRIs to invest more. Double–income NRI families, in the age group of 18-35, also invest more in Indian property.
- With an eye to revive the economy, the government has formulated policies and schemes to maximise investment options for NRIs looking to invest in the real estate sector. In the wake of such government endeavours, more NRI's are looking forward to invest in here.