Huge NRI investments likely in Real Estate in 2016

smcBy Dr Sanjay Chaturvedi, LLB, PhD

After Government’s investment friendly policies and Prime Minister Narendra Modi’s campaign, the confidence level in Indian markets have gone very high. A survey conducted by Accommodation Times Education and Research Foundation on 35000 NRI revealed the good news. Beside PM Modi’s crusade campaigns, international capital market have saturated and returns are not even 1% pa. Oil and Rupees have gone down hence the purchasing power has increased many folds.

NRE and NRO accounts are 100% up in nationalised bank and Indian banks having overseas operations. Getting good response through digital campaigns and great footfall in native places, NRIs are returning faith in the Indian markets which includes Real Estate. Investment in Real Estate either through Hedge Funds, Venture or company shares, NRIs are also directly investing in India.

Three tier cities and affordable housing besides mid size budget apartments like in Pune, Indore, Jaipur, Hyderabad and Mysuru are most preferred destinations for NRI investments. In Asia, other than India, NRIs are almost 1.4 cr, in Europe 63 Lacs, In USA 53 lacs besides in many other countries and continents. Even China, Japan and Fiji has Indian NRIs who are looking for opportunities.

In Hong Kong, even though NRI have HK Passport, PIO and NRI still can invest. Hong Kong becoming major international jewelry market and Indians are having deep pockets. They are interested mainly in high value properties above 10 cr. In Middle East, Especially Dubai and Sarjah, the average deal size is 50 lacs to 5 cr., the research revealed.

After RBI issues Master Circular and Instructions, even land investment is possible for NRIs. The relaxed norms and investor friendly policies by government will witness spurt incremental NRI investment in Real Estate.

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