What NRIs need to know about real estate investing in India

In the backdrop of challenges posed by the coronavirus pandemic, the Indian economy faced serious difficulties. However, the pandemic is over, and the Indian economy is making a resurgence. “The demand for pent-up is starting to emerge, and the economy will grow manifold in the years to come. It will appreciate property prices, and NRI investors One can expect an attractive ‘return on investment’ on the money invested. New segments of investment such as partial land ownership, co-working space, commercial real estateand warehousing present an excellent opportunity for NRI real estate investors,” said Subhash Goyal, MD- Goyal Ganga Developments.

Experts believe that the simplified taxation regime also encourages NRIs to park their surplus money in India. “NRIs also get an indexation benefit for properties held in India. For example, fixed assets held for more than 24 months are treated as long-term capital assets and receive indexation benefits with simplified taxation at 20%. The Income Tax Act of India also allows certain tax deductions under Section 80C and 80TTA,” said Atul Goyal, MD, Goyal Ganga Group

The NRI community has a unique advantage of converting their hard earned foreign income into attractive investment options in India. With a value of Rs. at an all-time low Against a dollar 75+, investing in real estate has become more affordable and acceptable.

Suren Goyal, partner, RPS Group, said the further depreciation of the rupee would increase the purchasing power of investors manifold.

“For example, a piece of land worth At present the cost of 75 lakhs will be around 1 lakh dollars. However, at a value of Rs. 65 against a dollar, the same price would have been 1 lakh 15 thousand dollars.