Bangalore is a hotspot for NRI investment

Bangalore is seeing a surge in real estate investment by Non-Resident Indians due to psychological links to the country, profitable prospects, and the existence of property management businesses to maintain the purchased properties (NRIs).

Such assets were generally seen as long-term investments that will create an endowment once NRIs come home and settle down. Furthermore, young NRIs have a distinct perspective on real estate investments. Investors look for high-quality projects in popular areas, and Bangalore has become a more appealing marketplace with all classes of investors in recent years.

According to a latest market analysis, 53 percent of NRI respondents are planning to buy Indian property in the months ahead and will do so for personal purposes, whereas 47 percent will do this for investment purposes. Bangalore remains to be the preferred destination for at least 22% of NRIs. As a consequence, NRI cash would pour into the Indian real estate sector in the Financial Year (FY) 2021-22, surpassing the USD 13.1 billion invested in FY21, with Bangalore remaining the biggest city.

What motivates (NRIs) to engage in Bangalore real estate?

Bangalore, according to Reeza Sebastian, President, Embassy Group’s Residential Business, is among Asia’s speediest growing cities, with an increase in NRI investments motivated not only by financial considerations but also by passion. Furthermore, as the country’s IT powerhouse and start-up capital, it is regarded as being one of the best places to live. Bangalore’s housing market, like that of Pune, Hyderabad, Chennai, and Gurgaon, has grown rapidly across the country.

Favourable environment

The introduction of the Real Estate (Regulation and Development) Act (RERA), loosened investment rules, devaluation of the Indian rupee versus the dollar, enticing developer incentives, and expanded internet and offline footprint of developers have all contributed to the trend’s growth. Such initiatives have made it easier for homebuyers to obtain information, allowing NRIs to invest in their homeland.

A wide range of high-end alternatives

There are very few locations devoted to luxury housing in Indian cities. However, because Bangalore’s per capita income exceeds that of most cities, residents in this metropolis have greater purchasing power than those in other areas of the country. As a result, numerous developers in the city are launching luxury housing complexes. The diverse choice of luxury property options provides buyers, particularly NRIs, with a wider number of investment possibilities and the ability to make quicker judgments.

Tax advantages

NRIs can take advantage of enticing tax incentives by investing in real estate in the country. An NRI can buy as many properties as they like, making it easy for them to rent, sell, and lease them. They can invest in a number of properties and generate a reasonable return via rental revenue, leasing income, and short- and long-term capital appreciation.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.