An NRI is always looking for investment in India to secure his future. Booking a house is the best decision to make with respect to money and security. It is also viable to invest money in properties when the market is bearish and not bullish for better returns in the future. Nowadays, buying a house in India has become a profitable option for NRIs as it can benefit NRIs in different facets. One thing is very important though, the place or city where the NRI invest, it should be a growing city where the rates of properties are appreciating or has a good scope to increase like in city of Mumbai, Navi Mumbai, Thane, Pune or Bangalore and some other upcoming and developing states and cities. 

Below mentioned is the list of benefits NRIs can reap by investing in India:

Tax exemption : By investing in real estate an NRI can save tax. Tax deduction on home loans on principal repayment and interest component can be claimed by the NRIs.

Rental Income : You can rent out your property on lease in India without any trouble. The income can be received to an account in India or the NRI’s account in the country he is currently residing.

Retirement benefits : NRIs that tend to plan their retirement can invest in India and take advantage of a reverse mortgage. This type of mortgage is not factored in the taxable income for NRIs. In this way, aging NRIs can enjoy the benefits of their property in India.

Safety of Money : There are a few fear of job security and world crisis like COVID-19 which motivates a NRI to buy a house in India 

Returns on Investment : The bank interest rates and returns are far less in Foregin countries such as US and Canada, which is another factor of why a NRI should buy a residence in India so they can earn more returns. 

Price Benefits : Annual real estate appreciates at 10-16% per annum.

Long term returns : Witnessing an 87% increase in property rates just in the last     decade the whole realty sector is estimated to grow at 30% over the next decade gives you a return which is much higher than what you are spending now.

Premium affordable housing : For NRIs looking to make an investment in India’s   real estate, Mumbai is among the frontrunners to offer premium affordable housing projects. NRIs can avail this opportunity to invest in Mumbai’s market which is among the costliest in the world at a relatively affordable rate and reap excellent returns in the years to come.  

Real estate and economic growth : The appreciation of a city’s real estate is directly tied to its economic growth story. As the financial capital of the country, Mumbai has witnessed rapid economic growth and infrastructural development, which has had a direct positive impact on its real estate sector. Many areas have transformed into bustling micro-markets for business and real estate development.

Emotional factor : Owning a house on your motherland has a different level of satisfaction, so this factor also motivates people to buy a property back in India. 

House Funding Choice for NRI’s : A NRI can easily purchase a house in India by funding money through normal banking channel. Also, the NRI’s can use the funds of an FCNR/NRE/NRO account to purchase a house in India.

A NRI or a Person of Indian Origin (PIO), can purchase a property in India, provided that the property that is to be acquired is not agricultural land, a plantation, or a farmhouse according to the Foreign Exchange Management Act (FEMA),

NRIs can make payment for the buying of immovable property (other than agricultural land/plantation property/farm house) out of funds received in India through normal banking channels. NRI who has bought residential/commercial property under general permission is not required to file any documents with the Reserve Bank.

An NRI can buy the property, either as a single owner or jointly with any other NRI. They must be a resident of India, otherwise, he or she is not allowed to invest in a property in India, irrespective of the second holder’s contribution.

Aged NRIs (especially senior citizens) can take massive advantage of the reverse mortgage as they can enjoy the invested property on one hand, and also take cash from the bank resulting in reverse mortgage of that property (not added as financial gain of the NRI).

With such a wide range of benefits for buying a property in India, and more particularly in Mumbai, NRIs can invest their funds in india.

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For any further assistance you can contact us on sales@urbanspacerealty.in or visit our website www.urbanspacerealty.in . We are an experienced Real Estate firm for more than 3 decades

This article has been prepared by Jeel Shah, Site Sales Manager of Urban Space Realty. These thoughts and publication is edited by Karan Shah, Partner of Urban Space Realty. Please note that these are personal views of ours and we have posted these reasons for NRI to buy in India according to our understanding. We are not responsible for any reliance placed on the content mentioned above.

Referred Link for this blog :

https://www.quora.com/Why-should-an-NRI-buy-a-house-in-India

https://www.bharatinfra.com/buying-property-in-mumbai-for-nri.html

https://www.99acres.com/articles/nri-investment-in-indian-real-estate-things-you-should-know.html

http://runwalgroup.in/blog/why-nris-should-invest-in-mumbai-real-estate