Real Estate is now India’s second-largest industry after agriculture in terms of India’s GDP funding, which is projected at 6 per cent to 6.5 per cent. Residential property development includes an enormous share of our Indian Real Estate market, including commercial spaces such as shopping malls , hotels and hospitals.
Investments in real estate may not be the vision of most people right now, as the Novel Coronavirus is drastically impacting lives, economies and industries around the world. However, after we get regularity and normality in life, NRI ‘s interest in India’s real estate sector is likely to increase. A number of factors give us reason to believe that. Modern real estate did not seem lucrative enough; the Coronavirus-induced crisis could cause the NRIs to rethink.
Indian real estate-an opportunity for the NRIs
The real estate market has always attracted the NRI community to Indic. This let them think of going back to India or, at least, investing in property in their home country. The current situation offers the NRIs an perfect opportunity to secure the lifestyle they are used to in India.
Reasons for NRIs to invest in Indian real estate
Safety in buying a new home in India
At present, India has set a precedent for all European countries on how to deal with these crucial situations. Eventually, this attracts the attention of NRIs to returning to their home country with a strong investment opportunity.
Erosion in the value of other investment options such as gold and equities
Due to a major decline in the value of other rising investment opportunities, the Indian real estate star is shining high. It has become a booming sector to invest in place of other alternatives for a better prospect of profit later on, when the proclaiming pandemic would meet its destruction.
Small interest rates by banks
This may be a well-intentioned explanation for NRIs to invest in Indian real estate. Anyone who favors FDs as an investment strategy will regret getting lower interest rates.
Banks have reduced interest on fixed deposits, significantly decreasing investment earnings. The largest SBI bank in India contributes between 5.5% and 5.9% of interest to FDs. ICICI Bank also contributes interest of up to 6% on fixed deposits.
In addition, cheaper home loans and property loans are available due to the prevalent COVID-19 pandemic. Low interest on such loans makes investment in Indian real estate more affordable for NRIs.
Depreciation of the Indian Rupee value
As can be seen from the current scenario, current GDP is not on a positive course. As a result, the Indian rupee is declining in value over the dollar. NRIs therefore have a great opportunity to invest their savings over property that would provide better returns in the future.
They would prefer to find the purchase much more affordable than the previous year.
A secure investment option
Investing in properties is undoubtedly a better and more secure option for all potential investors due to the current situation. It is also a good investment in the long term. Commercial complexes and luxury housing units are the most auspicious sectors to be invested in.
COVID-19 will have a thoughtful impact on the economic situation of each sector. However, due to the variety of housing units available on the market, real estate could see better repossession.
NRI investors will consider a strong mix of ready-to – move luxury properties across India ‘s nine prime residential real estate markets.
The real estate market will certainly undergo an upsurge in the near future due to rising job prospects. After such a powerful fight with Corona Virus, and with every possible initiative, the Indian government has placed in place a number of stimulus packages to unlock the vast potential of the real estate industry.