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How & Why Is Indian Real Estate A Profitable Investment for NRIs?

Property Investment Guide | 17th July, 2020


Better work and lifestyle opportunities are the primary thought behind Indians leaving their homeland. Although they’re living and working abroad, non-resident Indians (NRIs) are still citizens of India and are willing to stay connected to their roots. Now, when it comes to the Indian real estate market, NRIs tend to receive the maximum benefits thus making it a lucrative investment opportunity for them. Moreover, with the right policies, laws and regulations in place, it is a much transparent transaction as of today. Benefits of investing in Indian real estate are plenty and they are listed right here:


  • Low property prices & price benefits

Currently, the Indian real estate market is on its way to recovery albeit slowly. While it may seem like a stumbling block for most investors and buyers, NRIs can make the most of it. In the past, the rate of price rise in India has been higher than most Western real estate markets. However, this is the very reason why the Indian real estate market can offer higher value for money compared to other markets globally. Additionally, since the currency of all the first-world countries trades strong against the Indian rupee, it gives NRIs an edge. You can, thus, invest in high-end properties or more number of properties due to the significant gap in the currency value.


  • Tax exemption

NRIs are not levied with heavy taxes and can invest in Indian real estate and still manage to save tax just like a resident Indian. Tax deduction on home loans can be claimed on the principle repayment and interest components. Moreover, if the purchased property is sold after two years from the date of purchase, the profit earned on the capital gain is exempted from the NRIs’ income tax.


  • Rental income

Investing in Indian real estate can turn into an additional source of income as well. NRIs can invest and earn rental income without any hassle. Although 30% TDS (tax deducted at source) has to be deducted by the tenant, the remaining amount can be repatriated by the NRIs under the Foreign Exchange Management Act rules. The proceeds earned through the sale of this immovable property in India can also be repatriated under the same act.


  • Retirement benefits

The reverse mortgage scheme can benefit senior citizens who own a property in India. Basically, the money taken from the bank towards the reverse mortgage is not considered as a part of the NRIs’ income. This is a great benefit for senior citizens as they get to own the property and even get money from the bank.

Since you have a fair idea of how Indian real estate can be a profitable investment opportunity for NRIs, Gera Developments makes the process of purchasing a property in India much simpler by drafting a list of things you as an NRI need to know. For example, NRIs holding Indian passport do not require any permission from RBI for acquiring Immovable Property for bonafide residential purposes, as section 31 of FERA 1973 is not applicable to them. Similarly, there are other guidelines that NRIs need to adhere to in order to invest in Indian real estate, the details of which are mentioned right here.

Therefore, if you are an NRI and investing in Indian real estate has been at the back of your mind for a long time, then this is the time to take the leap of faith. Being one of the top real estate developers in Pune and top real estate builders in Goa, you can be rest assured that you will be in good hands when you invest in a property with Gera Developments. You can explore our entire range of properties across Pune and Goa, here: Gera Developments.

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