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21 Dec 2023

2024: The Best Time for NRI Real Estate Investment in India

2024: The Best Time for NRI Real Estate Investment in India

The dynamic Indian real estate market has notably attracted a huge number of Non-Resident Indians (NRIs) due to its lucrative investment opportunities. Over the past few years, a new trend has emerged with the shift of NRIs towards the luxury real estate market in India. This shift towards luxury real estate is not merely a trend but rather a strategic response to the evolving dynamics of the Indian property market. Various factors, including both economic and regulatory, have created an environment where the luxury real estate sector is poised for unprecedented growth.

In this blog, we will explore a varied range of factors shaping the NRI investment opportunities in the Indian luxury real estate market.

  1. Economic Outlook

    The economic policies and regulations in India play a vital role in influencing the real estate sector. Currently, India is experiencing positive indicators such as robust GDP growth, controlled inflation rates, and government policies actively supporting real estate investments. These factors contribute to a stable and secure environment for NRIs considering investments in Indian luxury real estate.

  2. Regulatory Reforms

    In the ever-evolving landscape of real estate, regulatory reforms often stand as a risk factor in the investment process. However, the recent regulatory reforms have brought a transformation with strict regulations, mitigating the investment risk of NRIs. The regulatory reforms encapsulate multiple factors in order to streamline the processes, enhance disclosure norms, and curb malpractices within the real estate industry.

  3. Currency Exchange Rates

    The importance of considering currency exchange rates cannot be over-emphasized when it comes to international investments. For Non-Resident Indians (NRIs), it holds particular significance in the context of investing in Indian luxury real estate. At the moment, the exchange rates are reasonable for NRIs, giving them more buying power. This makes it an excellent time for NRIs to think about jumping into the growing luxury real estate market in India.

    In simple terms, taking advantage of these favourable exchange rates is like a smart move, making Indian luxury real estate even more appealing for NRIs who want to invest their money wisely.

  4. Emerging Luxury Real Estate Markets

    Certain cities and regions in India are emerging as hotspots for luxury real estate, with Pune at the forefront. Factors such as robust infrastructure development, enhanced connectivity, and a wide array of lifestyle amenities make Pune an attractive destination for NRI investments. The city's real estate market is witnessing substantial growth, presenting lucrative opportunities for luxury real estate investors.

  5. Return on Investment (ROI)

    A detailed analysis of the expected ROI for NRIs investing in Indian luxury real estate reveals promising trends. Historical data combined with current market dynamics showcase the potential for significant capital appreciation. Investing in carefully selected luxury properties can yield substantial returns over the long term.

  6. Financing Options for NRIs

    When Non-Resident Indians (NRIs) think about investing in property back in India, it's essential to know about the different ways they can get the money to do it. These ways are better known as 'financing options.'

    So, for NRIs, there are different choices on how to get the money for their investment. They can look into mortgages, which are basically loans to buy the property. It's like getting a helping hand to make the purchase. Knowing and understanding these financing options helps NRIs make smart decisions about how to make their investment dreams come true in the Indian real estate market.

Conclusion

In conclusion, the year 2024 presents a golden opportunity for NRIs to venture into Indian luxury real estate. The combination of a favourable economic climate, advantageous currency exchange rates, and promising ROI make this year exceptionally beneficial to long-term wealth creation.

For NRIs seeking investment in luxury real estate in India, Amanora Arbano Towers, an upcoming residential projects in Pune at Amanora Park Town spread across 400 acres, stands as a distinct choice. This is one of the most unique township projects with a diverse range of configurations, including 1 BHK, 2 BHK, 2.5 BHK, 3.5 BHK & 4.5 BHK flats in Pune.

FAQs

Q 1: What is the return on investment (ROI) for NRI in Indian real estate?

NRI investments in Indian real estate typically yield annual returns ranging from 7% to 12%, depending on factors like location, property type, and market conditions. Rental income and property appreciation contribute to this ROI. NRIS must research local regulations and economic trends to make informed decisions. For more insights into investment for NRI in India, explore our comprehensive guide.

Q 2: How to avoid TDS on the sale of property by NRI? 

To avoid TDS on property sale as an NRI, ensure that the property is held for more than two years to qualify for long-term capital gains (LTCG) exemption. Reinvest LTCG in another property or save under Section 54. Obtain a lower TDS deduction certificate from the Income Tax Department if the actual tax liability is lower. Consulting with a tax advisor is advisable for personalized guidance on managing TDS on property sales by NRI.

Q 3: How much tax does NRI have to pay in India for property sales? 

NRIs selling property in India are subject to taxation based on capital gains. Short-term capital gains (STCG) tax is applicable if the property is held for less than two years and taxed at slab rates. Long-term capital gains (LTCG) tax applies if held for more than two years, currently taxed at 20% with indexation benefits. Additionally, a TDS of 20% on LTCG or a lower rate under DTAA may apply. For detailed advice on managing Tax on NRI selling property, consult a tax expert.

Q 4: Emerging Luxury Real Estate Markets for NRI in India.

Emerging luxury real estate markets for NRIs in India include cities like Pune, Hyderabad, and Ahmedabad. These cities offer upscale developments, robust infrastructure, and attractive rental yields. Areas like Baner in Pune and Gachibowli in Hyderabad are particularly promising. For more insights into promising locations for NRI real estate investment in India, check for detailed market analysis from credible sites.

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