Against the backdrop of the challenges faced due to the coronavirus pandemic, the Indian economy has faced severe difficulties. However, the pandemic is over and the Indian economy is booming. “Pent-up demand has started to show up and the economy will grow by leaps and bounds in the years to come. This will boost property prices, and NRI investors can expect a handsome ‘return on investment’ on the money invested. New investment segments such as fractional land ownership, co-working spaces, commercial real estate and warehousing present a great opportunity for NRI property investors,” said Subhash Goel, MD- Goel Ganga Developments.

Experts believe that a simplified tax regime also encourages NRIs to park their excess money in India. “NRIs also enjoy an indexing benefit for properties held in India. For example, real estate held for more than 24 months is treated as long-term fixed assets and benefits from an indexation advantage with simplified taxation at 20%. The Indian Income Tax Act also allows certain tax deductions under Sections 80C and 80TTA,” said Atul Goel, MD, Goel Ganga Group

The NRI community has the unique advantage of converting their hard-earned foreign income into lucrative investment options in India. With the value of the rupee at an all-time low of ₹75+ for a dollar, investing in real estate has become more affordable and accessible.

Suren Goel, partner at RPS Group, said that with the decline in the value of the rupee, the purchasing power of investors will increase significantly.

“For example, a piece of land that is worth ₹75 lakh would cost around 1 lakh dollars at present. However, at a rupee value of ₹65 to a dollar, the same cost would have been 1 lakh 15 thousand dollars,” he explained.