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Budget 2023
Budget 2023

Investing in real estate back home – what’s in it for the non-resident Indian?

The impact of lockdowns globally, created Covid distress and raised the significance of investing in Indian real estate simply on grounds of safety, security and stability amidst the globally challenged scenario.

Hiranandani

Hiranandani

From a wealth-creation perspective, the Covid-19 pandemic and the resultant economic impact across global economies has created opportunities in the real estate sector which make sense for an expatriate Indian to evaluate.

Indian real estate has traditionally been a favourite option for the global Indian, and in the post-Covid-19 world, it is even more so – and with good reason. The sentimental aspect is about it being ‘a home, back home’; from an investment perspective, it translates into capital value appreciation along with steady flow of rental income.

The Indian growth cogwheel is poised for high gear as the economy witnesses gradual recovery with positive GDP outlook, pent up demand and consumption in festive tailwinds, fiscal stimulus, booster dose by the government and accommodative stance of regulatory bodies to maintain low home loan interest rates, sectoral momentum on full-resumption, accelerated vaccination drive, augmented public spending on infrastructure built up.

These factors account for cumulative growth of Indian real estate as it ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. Indian real estate accounts for nearly 7% of GDP growth and 15% of total employment. Hence, growth of real estate is imperative for the economy's buoyant growth.