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Real estate investment for NRIs in Bangalore

Last Modified: 24 Sep 2020

The Indian real estate market, which was once believed to be exclusive to the local communities, is not so anymore. Today, a major chunk of Non-Residential Indians or NRIs are investing shoulder to shoulder with Indians in the growing demand for housing in the country. NRI real estate investment is a booming market in India and news reports estimate that NRI investments will rise to $13.1 billion in FY 21 from $6 billion in FY 14. So, what factors are contributing to the driving force behind big investments from Indians residing abroad? Here are the top reasons why you should invest and consider Bangalore as your choice of investment in property if you are an NRI.

Emotional attachment to your home country

This is the biggest driving factor for most NRIs investing in Indian property. Though a lot of NRIs are people who left the country in pursuit of higher education or livelihood at one point of time in their lives, their roots are traced back to India. Their heart and soul remain in their home country. They dream of returning home someday or the other, after saving up all their earnings. It is for this reason that a big chunk of NRIs invest in real estate in India, so that they can come back after retiring and spend their post-retirement life peacefully, close to their family members. In addition to this, much like Indians, NRIs too have a sense of pride in owning long-term valuables like gold and housing in their motherland. 

Lucrative prices of Indian property

As the strength of the rupee continues to weaken against the US dollar, the discounted and lucrative prices of Indian property fuels NRI real estate investment. Reports say that the USA, Canada, Gulf countries, UK, Singapore and Malaysia are the major sources of NRI investments in Indian real estate. Since owning a property in those countries by non-citizens is close to impossible in addition to competitive pricing, investing in one or more immovable assets yields a high sense of security. Furthermore, the simplification of rules by the RBI with Foreign Exchange Management Act or FEMA to attract foreign investment has throttled this already booming sector. The act allows Indians residing anywhere abroad, with the exception of a few neighbouring countries, to buy residential and commercial property except agricultural land. However, the agricultural land can be inherited or gifted to the NRI. 

Tax benefits 

The tax benefits for NRI real estate investment in the country is enviable. With the absence of a cap on the number of properties an NRI can buy, they can easily cash in on their investment in property by renting, leasing, selling, etc. They can invest in multiple properties and get a return on investment by rental income, leasing income, short-term and long-term capital gains.  Their rental income is taxed at whichever applicable income tax slab rate. Very much like local residents, NRIs too can claim the deductions like the 30% standard deductions, municipal tax deductions and in case of any home loan taken, deductions for the interest paid on that loan can be claimed. 

Why choose Bangalore for NRI real estate investment?

It is only natural for NRIs to do their background research, and learn more on how to invest in real estate in India before buying a property. However, if you are an NRI born and bred in India and know of the thrills of living in a metropolitan city, you will not hesitate in choosing Bangalore as your go-to option to invest in Indian property. Bangalore or Bengaluru is truly cosmopolitan in nature, with people from all cultures and walks of life co-existing, constituting its rich lifestyle culture. It prides itself on the moniker ‘electronic city’ due to the prevalence of IT mammoths like Infosys, Accenture, Wipro, TCS, IBM and a lot more. As we all know the development of the IT sector and manufacturing hubs is directly proportional to the growth of real estate in that area, assuring returns on NRI real estate investment

You can also read our blogs on why the outskirts of Bangalore are best for investment and the top reasons to invest in North Bangalore for more insights.

Rent or retirement plan – Bangalore is the destination

This south Indian city in Karnataka boasts of beautiful climatic conditions, rich flora and fauna, a never-ending list of places to visit and scrumptious South Indian food culture. These living conditions make the city favourable to live in, attracting thousands of students and professionals throughout the year. Being one of the fastest developing metropolitan cities, the pursuit of housing options too increases.  As an NRI if you are looking to invest in real estate irrespective of residential or commercial, Bangalore is the ultimate choice as it guarantees returns on investment. Whether you are planning to spend your later years in your new abode or rent it out and enjoy the returns, either way, you are in a win-win situation.

HSR Layout, Sarjapur, Devanahalli, KR Puram and Electronic city are some of the prime locations in Bangalore to invest in. Whether you are looking for properties in central Bangalore amidst the glitz and glam of the city or are in search of picturesque row houses in Bangalore surrounded by scenic greenery, we, at Assetz, offer ultra-luxurious and sustainable homes for your perfect investment choice. Check out one of our latest projects – Earth & Essence. This project offers buyers the flexibility to build luxury homes in the upcoming hub of North Bangalore, off the Bangalore International Airport Road. Strategically located in an urban community of like-minded individuals, Earth & Essence houses a neighbourhood free of looming skyscrapers to ensure you get the best home-experience while living in tune with nature!

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