It is a known fact that both NRIs (Non-Resident Indians) and HNIs (High Net worth Individuals) find Indian real estate quite profitable and with growing trends in Indian commercial real estate there has been significant investment from NRIs residing in different places of the world. These days, NRIs are mostly interested in investing their money in Commercial spaces and following the same trend, even HNIs are also ploughing huge amounts of money in high-ticket commercial properties.
Real Estate holds a wonderful investment opportunity for Indians living overseas. An estimated 30 million non-resident Indians (NRIs) in over 140 countries have an estimated combined wealth of USD 1.2 trillion. NRI’s are the highest in providing the maximum foreign exchange in the years 2017 and 2018. And most investment by them are made in the commercial real estate. According to the industry leaders the trend will continue for years to come because –
1. There is affection for the mother land.
2. Many NRIs want to invest for their retirement years
3. A few want to invest for the family staying back in India
There are many different types of commercial properties available to them, but both NRIs and HNIs are mostly interested in office spaces and retail spaces. Investors looking at commercial office space in Noida can now consider smart options in business parks. They truly understand the fact that commercial office segments have more benefits as compared to other real estate investments, like –
1. With the increasing trend of start-ups and co-working environment, it is easy to find tenants for the office space.
2. There is a great balance between the demand and supply of office spaces in Noida.
3. Commercial segment holds good scope for both regular income and capital appreciation.
4. They can open their own business once they decide to return to their country
5. The Foreign Exchange Management Act and RBI’s associated laws are in favor of NRI and HNI investments in the real estate.
6. Drop of value in currency – Their advantage lies in the fact that while they earn in foreign currency, they can invest back home in rupees and a drop-in currency value makes their case even easier. Depreciation in Indian rupee’s over the past few months has been a boom for the NRIs and they have been shifting to India’s real estate market, as it is an ideal situation to give them more returns for their money.
Investment in Delhi-NCR
Delhi-NCR is a standout amongst the most important property buying destinations in India, besides, it is the biggest in terms of availability of stocks. Owing to the large supply of some really good commercial spaces, NRI investors have a chance to choose what suits their requirements, like – some may like to invest in pre-leased asset, as it will start adding income from the very first day. Similarly, a few may like to invest in world class projects offering them first of its kind office spaces in business parks with amenities that are new to the people of that area. Such properties owing to their developer’s reputation and construction quality will have an almost nil vacancy rate, which means the owner will never be out of income from this type of property.
Besides Delhi-NCR, HNIs and NRIs can also explore other cities of India, like-
Mumbai – The financial capital of India is another big provider of real estate investment. IT/ITeS, Banking, Financial services and Insurance sectors take up more than half of the occupied commercial space.
Bengaluru – The IT capital of India is driven by the real estate demands from the major IT companies. Even though the city has many other industries as well – manufacturing, biotechnology and automobile, but it is the IT sector that occupies 57% of the available office spaces in Bengaluru.
Pune – Again jam-packed with IT companies, the place has a great demand for quality office spaces.
Hyderabad – Known as the technology hub of the country, the city has witnessed infrastructure developments to fetch the needs of engineering and trading companies.
Chennai – Being the hub for various industries, like apparel, automobile and electronics industries, the place is a good investment option for the commercial segment.
As Real estate investment trust meeting the current requirements, the implementation of Real Estate (Regulation and Development) Act also known as RERA will result in more affordable office spaces in near future. With positive behavior of the stock market and availability of good properties, HNIs and NRIs are returning to the Indian real estate markets to cash-in on the investment opportunities available in Delhi-NCR.