Attractive Taxation and Indexation Benefits Driving NRIs to Invest in Indian Real Estate

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    Non-resident Indians (NRIs) are showing a keen interest in India’s thriving real estate market, particularly in luxury properties, with sales witnessing a notable 15% increase. This surge in NRI residential sales, expected to reach 20% by 2025, reflects growing confidence in India’s real estate sector, according to a recent report by NoBroker.

    The rise in NRI investments can be attributed to factors such as simplified tax regulations, indexation benefits, and transparent regulations, making India an appealing investment destination for NRIs.

    Developers are witnessing a surge in demand from NRI investors, especially in the luxury property segment. In the fiscal year 2022-2023, leading real estate developer DLF reported NRI sales exceeding Rs 2,000 crore, accounting for about 14% of the total sales volume.

    Prominent markets fueling this growth include the Gulf Cooperation Council (GCC), US, UK, and Singapore. DLF’s recent project, DLF Privana South, saw approximately 25% of its sales coming from NRI markets, with significant interest from regions like the US-Canada, Southeast Asia, and the GCC.

    Aakash Ohri, joint managing director of DLF Ltd, highlighted the appeal of Indian real estate for NRI investors, citing opportunities to convert earnings into lucrative investments. Factors like simplified taxation and indexation benefits further incentivize NRIs to invest in India.

    TARC Limited, another developer based in New Delhi, has observed interest from NRIs in regions like Dubai, Abu Dhabi, London, Singapore, Hong Kong, and the United States. MD & CEO Amar Sarin emphasized the cultural connection driving NRI investments in their luxury developments.

    Vivek Singhal, CEO of Smartworld Developers, highlighted the attractive investment opportunities in India’s real estate sector, including appealing rental yields and long-term capital appreciation. The sector has seen increased investments across various asset classes, particularly in luxury housing, driven by growing demand.

    Overall, the combination of favorable taxation policies, indexation benefits, and transparent regulations is enticing NRIs to invest in India’s real estate market, contributing to its continued growth and development.

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