Non-Resident Indians’ -NRIs, desire to invest more on real estate properties, has been further boosted by the Cap Removal on Loans.
Recently it was reported that nearly 90% of NRIs living in the United Arab Emirates (UAE), prefer Real Estate Investment. Most of them prefer to buy homes in India not with the plan to return rather as a safer means to invest their additional income. The survey pointed out a six point growth in comparison to the previous year.
Rupee’s lower value, volatile nature of stock markets, etc. are said to be enhancing factors for Real Estate Investment. Moreover the sluggish real estate prices often bring in higher returns. Besides all the above factors, availability of bank loans plays a prominent role.
Advantages of availing bank loans were further lifted with the central government’s decision to remove loan- cap. With the new decision the NRI’s bank deposits will be devoid of cap- on- loans.
There exists vast number of opportunities for Real Estate Investment. These opportunities are not confined to the metros but it spreads over to the tier-II and III cities as well.
Reports prove that the country has accurate shortfall of housing. The figure reaches well above 25 million homes. Middle income housing is severely affected. The Government of India is planning to deliver higher incentives to invite and rope more private investments.
The government hopes to bridge the gap between limited supply and over demand for houses. It has been estimated that the shortfall of housing will be around 10 million a year by 2030.
Mid-segment housing demand is increasing all over India. The situation is not different in any of the suburbs of New Delhi, NCR regions, or any other metropolitan cities of India. Prominent cities like Bangalore, Chennai, and Kolkata do show increase in demand for mid-segment housing.
Besides the Tier- I cities, the tier-II class cities are also witnessing increase in demand for mid-segment housing. These areas have become highly demanded by the NRIs.
NRIs do aim at making profit out of the available opportunities in booming cities like Pune and Thane. Some of the locations in Navi Mumbai are also reported to have higher demands.
Higher rate of returns is assured by real estate. Real estate in Ulwe is said to have a growth rate and price appreciation of 145%. Ulwe thus has become the best option for real estate investment. According to the reports there are nearly more than a dozen cities which assure over 90% of return.
The discounts and freebies offered by the real estate developers also attract the investors mainly from NRIs. Some of the real estate developers offer 15% of discounts. Real estate developers use these discounts to revive the sluggish market. However this has an added impact in the investment scheme of the NRIs.
As the Indian government is on the verge to take away the loan-cap on bank deposits of the NRIs, the NRIs will be allowed to dispatch an amount even up to $ 1m. So definitely the cap removal on loans will lift NRI real estate investments.