NRI Real Estate Strategies for High Returns & Low Risks

The Indian real estate sector has emerged as a promising avenue for wealth generation. This is the contribution of the rapidly expanding economy and otherwise. Although sentimentality has been a driving factor, with considerable progress in the country, buying a “home back home” is supported by valid reasons.

This comprehensive guide aims to provide the best investment plan for NRI to make informed decisions in the Indian real estate market. By understanding the risks and rewards associated with this asset class, individuals can position themselves to capitalize on the significant opportunities that abound.

So scroll down to dive into the intricacies.

Why investing in real estate is better compared to other investment classes

There are numerous reasons to choose real estate over other investment channels, but tangibility makes real estate stand out. Apart from this, stable value is another factor NRIs prefer in this sector over other classes. Finally, due to the generation of stable income and tax benefits, real estate emerges as a top choice among overseas investors and those investing within the country.

Reasons why NRIs are investing in Indian real estate

Before checking out the best strategies, let us walk down the factors driving such decisions:

1. The devaluation of the rupee against major currencies has resulted in the growth of investment from the NRIs.
2. The premium and luxury property segments drive most investment plans for NRI, promising high profit. They find this sector more inviting than volatile stocks and cryptocurrencies.
3. Sentimental reasons are a prime factor that encourages them to buy properties in Indian cities.

List of NRI Investment Plans in India

Let’s take a look at the various sectors:

Real estate

It can include various properties like:

• Real estate investment trust
• Commercial properties
• Residential properties
• Real estate funds

Stocks and bonds

NRI can invest in multiple sectors like:

• Mutual funds
• Direct investment
• Government bonds

Fixed deposits

These are popular investment options for individuals seeking a secure and reliable way to grow their wealth. Fixed deposits of a fixed rate of interest over a specified period provide a predictable return or investment.

Gold and silver

Purchasing precious metals have long been considered haven assets. They offer a hedge against inflation and currency fluctuations. For NRIs, investing in these can be a wide strategy to diversify their portfolios and protect their wealth.

Profitable investment for High Returns & Low Risks

After understanding the various schemes, an important question arises in an investor's mind: Which is the best investment plan in India for NRI?

Insert scenario real estate investments not only offer several advantages but are also low risk with better returns because:

Tangible asset

• They have physical existence with intrinsic value, unlike stocks, are more volatile bonds
• Real estate assets tend to have a longer life span and are less susceptible to rapid depreciation compared to other investments

Stable returns

• Real estate investment can provide a steady stream of rental income, even during economic downtowns, as noticed during the COVID-19 period
• Over the long term, property values 10 to appreciate, specially in strategic locations like Mumbai

Inflation hedge

This strategy is designed to protect your wealth from the erosive effects of rising prices. Real estate can act as a hedge against inflation as the property values of an increase in line with rising prices

Diversification

• Real estate can diversify your investment portfolio, reducing the overall threat
• Investing and properties in different regions of the country and help mitigate risk associated with local market fluctuations

Tax benefits

In certain cases, NRIs may be eligible for such benefits on capital gains from real estate investment

Robust Government support

The Indian government has implemented various policies and regulatory frameworks to promote real estate investment and protect the interest of the NRIs

Where can NRIs invest in?

A well-defined road map has been caved down due to the announcements made in the Union Budget for FY2024-25. It is estimated to drive overseas investments in the Indian real estate sector. With such intentions, one question remains: Which investment platform is best for NRIs?

Finding a reliable partner is crucial for success. In such cases, Piramal Finance emerges as a leading financial service company in India, offering a range of products and services catering to NRIs. With comprehensive investment solutions and a strong reputation for reliability, it creates a secure investment environment. Apart from the competitive returns, they offer products that assist NRIs to diversify their portfolios and reduce risk. Additionally, they facilitate the repatriation of funds to NRI accounts, ensuring a seamless experience.

With its comprehensive services in real estate and finance, Piramal emerges as a one-stop solution to NRI investment.

Key takeaways

With the compelling blend of growth potential and stability for NRIs seeking lucrative investment opportunities, the real estate market stands out. With the increasing popularity of residential sales, now is the opportune time to explore the various options available. By carefully considering the above mentioned factors and leveraging the potential of the Indian market, NRIs can start on a rewarding investment journey.

Disclaimer- This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.