Recent years have seen an increase in non-resident Indian (or NRI) moving to India and investing their money in different ways, one of which is into commercial real estate in the country. In this article we’re going to look at why that is, the challenges of such investments and what the future may hold for them in terms of both potential and pitfalls.
Introduction
Who are Non Resident Indians (NRI)? Non Resident Indians are people of Indian origin who live outside India. Some NRIs may have been born outside India and may not even be culturally Indian, though they identify as ethnic Indians.
For example many non-resident Tamils live in Western countries while a large number of non-resident Malayalis come from United States and Canada or have roots there or have ancestors who lived in those countries. The term Non Resident refers to those NRIs whose stay in India is less than six months in a financial year. If you belong to above category then it’s time for you to invest your money in real estate sector.
General Information on Indian Commercial Real Estate Market
Before we get into why NRI’s are investing in India, we need to give some context on India’s commercial real estate market and why it has attracted such global interest. The sector has seen massive growth over the past few years and is considered a safe investment thanks to low vacancy rates and strong demand from tenants.
Real estate firms who have traditionally targeted local investors are now trying to break into global markets via social media platforms such as Facebook, LinkedIn, Youtube and Twitter. It is vital that real estate marketers work out how to communicate with foreign investors in a way that resonates with them by getting closer to their audience through personalised communication mediums.
How To Approach An Investment Project
One important thing to keep in mind is that no matter what type of investor you are, if you’re investing abroad, you need to have a long-term outlook when it comes to your project. While there are still plenty of places where investors can capitalize on high returns and turn profits quickly, real estate is typically a longer game.
Don’t expect a huge cash-in at year three; chances are you won’t see great returns until sometime after that—and it could be much further down the line. That’s why picking up investment properties in India might be one of your best options. They often appeal to short-term investors as well as those looking for more predictable income later down the road.
Advantages of Investing in India
If you’re looking to diversify your portfolio of investments, commercial real estate in India might be a good bet. And while there are many advantages to investing in Indian real estate,
here are a few things that set it apart from other markets:
1) Inflation Rate: The inflation rate for India is currently lower than for many other countries. This means that your money has more purchasing power and can thus secure you a better investment value.
2) Potential Growth: While most developed countries have been experiencing relatively low growth in recent years, India has been experiencing 7-10% growth annually.
3) Attractive Opportunities: Many experts predict that demand for rental property in India will continue to rise over time, making it an attractive investment opportunity.
Disadvantages Of Investing In India
With so many advantages, you may be wondering what are some of India’s disadvantages to investing in real estate. The biggest is that it’s difficult for foreign nationals to invest in property in India. You need to have an established connection with someone within India if you want to buy.
Another disadvantage is liquidity: there are lots of long-term property investments, but relatively few short-term options. If a foreigner can’t sell for at least a year (or find a way around those restrictions), he or she will likely lose money by investing in India. And then there’s always risk though Indian real estate markets seem stable and healthy right now, it would take only one economic crisis or political upheaval to destabilise prices completely.
Conclusion
All in all, it seems like investing in commercial real estate has a lot of benefits. The online nature makes it accessible for investors everywhere and help them manage their properties remotely. Happyhomz.online plans to incorporate business ideas by interacting directly with landlords who are looking to attract NRI investors while providing reliable property options at competitive prices. Happyhomz.online is a promising option for India-focused investors looking to grow their portfolio!