Top Reasons Why NRIs Should Invest In Commercial Properties In India

Commercial real estate is booming in India, and residential & non-residential Indians alike are jumping on the bandwagon of purchasing commercial properties. Let us check out the top reasons, as suggested by international property consultants in Mumbai, on why NRIs must invest in commercial real estate in India.

• Thanks to rapid urbanisation, the Indian commercial real estate market is performing exceedingly well — far beyond expectations, especially when you compare it with the residential real estate market. The commercial real estate sector is witnessing the highest growth in years on the back of strong economic fundamentalism.

• The annual rental yield that you can expect from commercial real estate is much greater in comparison to the residential real estate sector. Plus, the commercial market is growing, which will further enhance your rental yields annually, giving you a steady year on year increase of approximately 10 to 1 %.

• The current exchange rates of international currencies have proved to be more beneficial to NRIs. The value of the rupee plummeted to its lowest levels in years, almost crossing the INR 71 per dollar mark. This plummeting rupee provides a lucrative opportunity to prospective NRI investors who plan to invest in the Indian commercial real estate and are looking for the opportune moment.

• According to NRI property consultants, the government has further eased the FDI norms in real estate investment. Moreover, the government focus has been primarily on providing affordable housing for all. These government initiatives add confidence to prospective NRI investors, making the real estate market more lucrative for NRI customers. Also, enhanced government intervention leads to strict regulations and transparent transactions, which also helps you boost investor confidence in the commercial real estate sector. The commercial real estate sector has witnessed a higher influx of investments in recent years. This phenomenon is enough proof of the growing demand for Indian commercial real estate.

• The introduction and effective implementation of RERA (Real Estate Regulation and Development Act, 2016) has ushered more accountability and transparency into the real estate sector. Now, every real estate project has to get registered with the RERA authority. In addition, the sales intermediaries, such as property consultants and NRI property consultants, must also get registered with the RERA authority to do business. Doing so ensures that only legal and legitimate bodies function in the sector, thereby filtering out the illegitimate and malicious elements from the business. This act has made the commercial real estate market more lucrative and profitable for NRI inventors. Therefore, you can expect increasing rental yields on your real estate investments.

• NRIs investing in India worry mainly about their monthly outgoings such as the charges involved in maintaining the property and the premises. You don’t need to worry about the monthly outgoings on commercial real estate, as they lease out much faster than a residential property. Plus, commercial leases are primarily for the longest term legally possible. Therefore, once you have found your client, you don’t need to worry about the maintenance charges as it will be borne by the occupant. Further, monthly outgoings for commercial property are far lesser in comparison to a residential property. So, you can expect to get higher returns with minimum expenditure. It will boost your annual income from your commercial property.

• Another reason why investment in commercial real estate in India is particularly beneficial to NRIs is that they can avail the loan facility and can claim tax exemptions under Section 80 and Section 24 of the Income Tax Act.

• According to NRI property management services, the modern-day work culture in India is experiencing a transition. Regular commercial office spaces have given way to hybrid coworking spaces. This transition has ensured higher occupancy in commercial premises. Commercial premises in India are selling like hotcakes, thanks to the boom of start-ups that are increasingly looking for rental spaces to set their offices. As an NRI investor, you can take advantage of this moment and invest in as many commercial real estate properties as you want, since you don’t have any upper limit on real estate investment.

• Cities like Mumbai, Bengaluru, Delhi-NCR, Pune, Chennai and Hyderabad are the hotspots for commercial real estate among NRI investors. Mumbai remains one of the hottest destinations for NRI investment due to its high rental yield and greater property value. Also, commercial real estate in Mumbai commands more value than in any other location, making it the most lucrative destination for commercial real estate investment among NRI investors.

These are the top reasons why NRIs should invest in commercial real estate in India. The commercial real estate sector is experiencing huge investments from big investment firms, making it the most lucrative sector for foreign investment. So, you must make the most of this worthwhile opportunity. Seek advice from an expert NRI property management services when investing in commercial property.

Read above article useful information & knowledge for you.