India is fast becoming the preferred real estate investment destination for GCC-based NRIs, stated a recent report.
The demand is mainly driven by high returns and ease of purchase which in turn makes Indian real estate market an extremely rewarding proposition to GCC-centric NRIs with long-term investment perspectives.
While NRIs continue to prefer metro cities in India such as Delhi, Gurgaon, Mumbai, and Chennai, cities like Chandigarh, Panchkula, Goa, and Kochi are also attracting investment from overseas. Among these, Delhi NCR is attracting a sizable portion of NRI investment in Indian real estate with Gurgaon in particular owing to its well-developed infrastructure and thriving social fabric.
Although demand for properties in India is high, the supply is also increasing at a healthy pace, leading to rising prices. The depreciation of the rupee, the geopolitical situation, and the increase in global interest rates have further boosted foreign investment in Indian real estate.
To make it easier for NRIs to invest in properties in India, the government has introduced several measures. NRIs can now more easily obtain a real estate investment license, avail of negative equity facility for property purchases, and access interest-free loans for self-financing real estate deals. These measures have made the real estate sector more accessible and appealing to NRIs. Additionally, several real estate firms offer services such as property financing, tax consultancy, etc. to NRIs and expatriates, simplifying the process of investing in Indian real estate.
Investments from the GCC as a whole account for close to 41 percent of the global contribution reports quoted Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Home Developers Ltd, as saying. with the contribution increasing in the last two years.