The COVID-19 pandemic has affected the Indian economy, particularly the real estate sector in this case. As a result, construction activities have come to a stand-still, inventory has piled up and pending sales have impacted the liquidity supply in the sector. Furthermore, the fall in the GDP of the country has made the value of the Indian Rupee dip even more. In this glum scenario, if there’s one silver lining for anyone, it is certainly for NRI investment in India!
Here are 4 reasons why NRI investment in real estate is a smart option:
Low Rupee Value
Since March 2020, the value of the Indian Rupee has fallen by 7% as compared to the US dollar. This means that NRIs can now look at bigger and better properties when they invest their money back home. Additionally, since real estate is a safer investment option than other investments, they can be assured of good returns too.
Reduced Home Loan Rates
The Reserve Bank of India reduced the Repo Rate from 5.75% to 4.40% on March 26 to provide a boost to the economy. It has caused the home loan interest rates to drop as well. As of May 2020, the interest rates are at an all-time low of around 5.14% to 5.8%.
Low Returns On Other Investments
Other forms of investments like gold and fixed deposits are also considered to be safe investment assets. However, the value of these assets has also taken a hit due to the pandemic. While the gold prices were down by 0.6% in April 2020, the interest rate on fixed deposits was also reduced by many lending institutions. In such a scenario, real estate can turn out to be a promising investment option.
Many developers are providing various offers, payment schemes and other plans to attract buyers. For example, at Amanora Park Town, we have introduced the Amanora Rate Guarantee Plan. Under the plan, our customers are assured that their investment will be secure, and even if property prices fall in the future, the benefits will be passed on to them.
While the property prices are low now, it is a good opportunity for NRI investment in India. Because when the lockdown is lifted, property prices will certainly start increasing and the returns-to-investment ratio will start decreasing.
At Amanora, we have a variety of property options for NRI investment in Pune, ranging from luxury flats in Pune to some of the best independent villas in the city. Moreover, we are taking efforts to ensure our investors feel confident to invest their hard-earned money in our properties. The Rate Guarantee Plan is only one such initiative.