Due to the substantial difference between Indian Rupee and US Dollar, an investment in India is always a lucrative option for the Non-Resident Indians (NRI). While bonds, stocks and bank deposits are some ventures for them to park their money in, real estate, over time, has come out as their favorite investment venture. The simplified policy framework for NRI investment in the Indian real estate sector has revived their interests in the industry.
However, the NRIs also choose the perfect location for real estate investment so that they can earn high profits in the long run. A decade ago, Gurgaon used to be the largest NRI investment hub. Its rapidly developing commercial sector and the premium properties attracted their attention. This status was then shifted to Mumbai when branded residences and high-end skyscrapers were launched in the city. The recent reports suggest that Bangalore is, as of now, the favorite investment destination of NRIs in India.
A report titled ‘Emerging Trends in Real Estate Asia Pacific 2016’ published by the PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI) said that Bengaluru has risen above Mumbai and is now competing in the race with NCR to become the real estate capital of the country. Being the IT hub of India, Bengaluru satiates the needs of domestic end-use buyers as well as the foreign investors who look for value appreciation in the long run. Both the residential and commercial market in the city are at their peaks.
According to the reports of Knight Frank India, localities like Thanisandra and Panathur-Varthur in Bangalore are the most prospering ones and are expected to witness a price rise of more than 60 percent by the year 2020. Ulwe and Madh-Marve in Mumbai also expect tremendous price appreciation. Proximity to employment hubs, industrial areas and major commercial setups is the main driver of residential demand in all four locations.
The FDI norms have also been eased which has imparted a new hope to the NRI individuals as well as the overseas institutional investors. They have generated more confidence in the industry because of the increased transparency. Most of the investments by foreign investors is in the form of premium residential and commercial properties. Such units are in abundance in Mumbai and in some posh locations of Bengaluru. Developers are coming up with more such projects equipped with modern amenities at coveted location to attract foreign investors.
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