NRIs, Invest Now in Property

                The Indian housing market today is in a state of accelerated consolidation, where organised corporate players are emerging as the top real estate 
developers. This is good for the market's credibility, transparency, and overall health.

The INR is currently quoting at Dh20.41, which translates into more purchasing power for Non-Resident Indian (NRIs), historically low repo rates and 
property circle rate revisions have also enabled housing prices to fall significantly in major investment destinations across the country.

Anupam Rastogi, co-founder and Head - GCC, Square Yards, said: "NRIs today, more than ever before have their eyes firmly set on a permanent 
address in India, given the shifting global equations and the importance of a home that doubles up as an office in a rapidly growing work from home 
trend."

NRIs have also realised that rent is a pure expense while a housing loan EMI is about net worth creation, asset building, a secondary income source if 
need be.  According to the Reserve Bank of India's (RBI) Foreign Exchange Management Act (FEMA), NRIs holding a valid Indian passport have a 
blanket permission to invest in multiple number of immovable (residential and commercial) properties in India.

As far as tax benefits are concerned, NRIs are eligible to a tax deduction on interest paid and loan repayment on their home loans if they are NRIs as 
per the income tax definition and file their income tax returns in India. Some tax benefits also extend to selling of property also where they can exercise 
the option of cutting down on long-term capital gains tax payable by them by buying another property.

Dr Niranjan Hiranandani, National President, NAREDCO, said: "There are several factors that work out in the favour of property investors at the 
moment. Since the last couple of months due to the Covid-19 lockdown situation there has been a huge in the demand in real estate properties. Almost 
all the developers are facing liquidity crises and would be keen on clearing their unsold inventory. Many developers are offering properties at very 
reasonable rates or offering incentives to convert a quick sale. The funds would then be used to complete their stalled projects or start a new project 
which they had kept on hold."

NRI's form a sizeable chunk of our investor base in the Indian real estate sector due to its emotional and commercial reasons. So developers do 
anticipate demand rising for real estate by NRIs in the coming quarters.

India continues to be one of the most preferred investment destinations for expats. Last year, India was one of the top countries receiving foreign 
remittances to the tune of $83 billion.

The real estate sector is one of the largest employment generators after agriculture in India. The developers have ensured that its workforce is well 
taken care of and paid salaries on time. However, most of them are also facing working capital issues and struggling with paucity of funds at the 
moment.

The Government of India and the Reserve Bank of India have taken many steps, which include fiscal stimulus packages and structural reforms to 
revive the economy and arrest job losses. The impact of the same would be surely seen in the coming years.

The Indian real estate market has been significantly impacted by the pandemic and the subsequent lockdowns. The real estate sector is highly over-
leveraged and reduced business over the past several months is bound to make it desperate for sales.

Khetsi Barot, Executive Director, The Guardians Real Estate Advisory, said: "The developers have realised that ready-to-move-in and completed 
projects tend to attract a large number of buyers. Such projects also realise payments immediately as the buyers intend to immediately take 
possession of their asset."

Most developers are currently focusing on completing their projects that are under construction and then depend on inventories at completed projects 
for their revenues.

"In order to make it lucrative for potential buyers and primarily to gain sales volumes developers have begun offering bank subvention and flexi 
payment schemes as well. These schemes have been introduced to comfort the buyers at a time when they are tilted towards postponing the 
purchase," added Barot.

Today NRI's are not eyeing Indian real estate only as an investment option but are also looking to build something they can use in near future for 
themselves.

Therefore, in current scenario where ready properties are available at good price with option to move in and pay later they can consolidate their 
investment into a large, spacious, well designed homes that suits their family requirement in an established location with latest facilities and amenities 
in the complex and if it comes with good location it's an added advantage as an investment.

"NRIs can take the benefit of current foreign exchange while transferring lump sum savings they have and the balance can be funded over time 
through home loan which is all time low at about 6.8 per cent," said Bhasker Jain, Head - Sales, Marketing & CRM, The Wadhwa Group.

"More than anything else developers are trying to complete existing projects in hand rather than launching new ones as today buyers don't have 
appetite to take risk of delay in completion of projects. Also due to Covid-19, end users who have realised the importance of a well planned home want 
to move in as soon as possible for safety & health of their family. NRI investors too can get a healthy rental yield immediately if they put money in ready 
projects."

Source: Khaleej Times