Falling Indian rupees invite more NRI investment in India. A majority of NRIs plan to invest on real estate properties. Sumansa Exhibitions’ survey disclosed that nearly 89% of the UAE NRIs do have investments in real estate.
The role of Non-Resident Indians (NRIs) in the investment strategy of India is prominent. Recent studies prove that most of the NRIs prefer real estate properties to Gold, bank deposits and other investment options.
Sumansa Exhibitions which conducted a survey among the UAE NRIs revealed that nearly 89% of them prefer real estate properties for their smarter investment. Most of them invest on luxurious properties worth millions of Indian rupees.
The survey said that the real estate investment has rose by 6% in comparison to FY- 2011. According to the CEO of Sumansa Exhibition, Mr. Sunil Jaiswal real estate investment is the safest investment option.
Real estate investment assures higher returns in comparison to all other investment options. With the increased interest rate the bank deposits are also profitable. Yet in comparison to the real estate returns this is lower.
The figures reveal that nearly 26.7 % of UAE NRIs have real estate investments in India. Another important factor which led the Indian NRIs ato invest in India is their affection to it. Most of them want to return after their age of retirement. So having home in motherland is an advantage for them to return.
Most of the foreign countries do not grant citizenship rights to the foreigners. This necessitates the return of NRIs.
With the fall of interest rate the NRIs feel it lighter to invest in real estate. This is also a supporting factor.
Mr Jaiswal opined that metropolitans are favorite spots of investment for the NRIs. Mumbai, Bangalore and Delhi are counted favorite real estate investment destinations of the NRIs. Some Tier II cities like Hyderabad and Pune are also preferred.
Figures show that top- end properties are more preferred. Investing on top-end properties are often said to bring higher returns to the investors. Most probably the investment brings higher returns within four or five years’ time.
Builders’ Reputations, value appreciation of the area, clear track records, superior quality, etc. determine NRIs’ investment selection. So to say NRIs are very selective in their options of investments.
Bank deposits stand second to real estate. Bank deposits also offer good returns. It is higher to all other forms of investment yet in comparison to the real estate it is bit lower.
