Investing in immovable assets like real estate would certainly give anyone a sense of achievement. The feeling of buying a property in India is extraordinary for NRIs irrespective of where they are living. And I can vouch for that being an Indian American now living in India myself. Re-establishing connections with the motherland and a desire to experience a similar lifestyle and exchanges with people of similar social and cultural fabric and identity play a major role in the remarkable growth of NRIs in the real estate sector.
Last couple of years have not been kind to the Indian Rupee. Factors as wide-ranging as the COVID-19 outbreak, an uncertain global geopolitical landscape, and a worldwide increasing interest rates and high inflation have led to a dramatic fall in the currency’s valuation against the US dollar, with the exchange rate falling from INR 68.374 in July 2019 to around INR 82.00 now.
But, as the adage goes, there is an opportunity in every crisis – and NRI investors have been quick to spot.
More Rupee for your Dollar, Pound, Dirham, Euro ……
Prima facie, the fall of the Rupee feels like motivation enough for NRI investors. Real estate purchase has always been a popular avenue for NRI investors. With the currency’s depreciation offering more value for their capital, they are flexing this increased spending power with property investments.
But this alone does not explain all the factors behind this surge of investor interest.
Reasons behind the Rupee’s depreciation such as high global interest rates and inflation have also destabilised other investment options such as stocks, commodities, and gold. The global financial markets are still recovering from the bear runs between March and June 2022, and there have been enough warnings of future bear rallies before the markets turn a corner. Investments in commodities have also been risky due to market turbulence, and there are signs that global gold prices may drop.
Increasing Property Prices
On the other hand, real estate in India has grown robustly, despite witnessing several relatively lean years within the past decade. As per industry indices, property prices in the country increased by about 70% in absolute terms in the five-year period between June 2012 and June 2017. After the blip caused by the pandemic, a recent Reuters poll projects this momentum to continue for the coming few years with prices of residential units expected to increase by 7.5% in 2022, and by around 6% in 2023 & 2024.
Leveraging technology
How to identify the right property for your needs, and where to look If the data above has piqued your interest in a real estate investment in India, you may want to join your fellow NRI investors in using cutting-edge proptech platforms to streamline the entire journey, from discovery and research to final sale and documentation. Operating at the intersection of tech, digitisation, and human expertise, these platforms can help you research the most relevant projects.
Increase in Transparency
Key information such as regional pricing trends, current project status, developer history, RERA certification status, etc. is mapped to inform your decision-making, while dedicated experts can also be hired to reduce the hassle, time, and risk associated with researching and purchasing a property. Doing so also eliminates the involvement of multiple parties traditionally entrenched in such deals, such as local relatives, brokers, and acquaintances, to further simplify the process.
