India looks good, let’s invest there!
This is what most of the investment entrepreneurs have been talking about. Not so surprisingly, most of them are NRIs or have relations in India.
So, after a setback for several years, why is real estate business picking up speed again?
We will try to answer this question with the following points.
India is seen as one of the fastest growing economies in the South Asian region. With the development, the property rates are also catching up slowly. The initial price is not that much, making it a great investment set up.
This is further promoted by price benefits offered by the govt. For NRIs under several schemes relating to FDI, which makes it easy for the investors to route to India than any of the neighbouring countries.
Another blessing bestowed by govt. Schemes is the exemption of taxes in various fashions. For example, NRIs are not required to pay taxes on the profit earned due to increment in property value for two consecutive years. NRIs also enjoy claims on home loans and their repayments.
A majority of NRIs who own properties in India use it as their place of accommodation during their infrequent visits. These properties become a great mode of income via leasing. High profile properties generate a significantly profitable income in the form of rent even after deduction of TDS.
These were some of the factors attracting investments from NRIs in India. Now, the next question arises, where do these NRIs go to invest? What places are sitting in the most investment-friendly zones?
Let’s have a look!
Regarded as the ‘Silicon Valley of India’, Bangalore enjoys the reputation of being one of the best places to invest for NRIs. Mainly, due to the low property prices in the region and world class infrastructure. The city is a great place to live in and has shown a steady incline in growth rate as well.
The financial capital of the country is one of the prime spots for investment right now. Especially, the developing areas that promise relatively easy acquisition than other parts of Mumbai. Furthermore, the establishment of technology parks and rising corporate sector has boosted real estate business for NRIs seeking to invest here.
Just like Mumbai, the rapid growth of IT companies in Pune is acting as a catalyst for land acquisitions by investors from all around the world. The demand of business centers in Vishrantwadi, Kharadi and Baner has kept Pune in the front league of investable places for India.
Now you know why India is the ultimate destination for Non-Residentially Indians in a profit-promoting scheme of things.