If you are a NRI and are looking for areas in investing in India, real estate may be just the right option for you. Considering the opening up foreign direct investment (FDI) in several sectors, including real estate and favorable government policies, India has attracted a large number of investors from all over the world. According to a recent report by real estate consultancy, Cushman and Wakefield, India has received a total estimated investment of $1.2 billion in the real estate sector making it the 10th most invested location in Asia-Pacific region of which investment in land was the highest at $838 million. So what are the factors that are prompting NRI investors to look at India?
- The relaxation of norms by the government has created a vast opportunity for foreign players, who are competing for a greater role in the Indian market. Realty sector is expected to surge ahead significantly.
- Due to rapid urbanization, positive demographics and rising income levels, the Indian real estate sector has attracted significant investment over the past few years.
- Industry experts say that people living in the Middle East and other Gulf countries have displayed significantly higher interest in properties in the country as compared to others.
- A majority of NRIs are looking for investment in India as a second home and the cities that drive real estate demand overseas are Delhi-NCR (especially Noida), Bangalore, Chennai, Jaipur and Mumbai.
- Some Tier II cities have also seen a rise in demand from NRIs for investment.
- Global investors are optimistic about the Indian economy, which is expected to witness more than 100% increase in foreign investment. The new government’s agenda lay focus on ‘minimum government, maximum governance’ is certainly encouraging foreign investment.