NRIs Bullish on Indian Real Estate

March 5, 2007	(3 votes, average: 4.33 out of 5)  Loading ...
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Non Resident Indians (NRIs) are much interested in investing in real estate over any other investment options. The underlying reason for such an interest is high returns. Around $600 million may have come through such investments in the last calendar year alone.

The law firms boast of receiving five or six enquiry calls every week, mostly from NRI who want to park their fund in real estate development in India.

A large portion of the investment, which is near about $10-25 million comes from the funds sourced from an extended NRI clan. NRI investors generally take much interest in the real estate available in their native places, where they can leave the property under care of their close friends or relatives.

The trend has certainly boosted the real estate transactions in Tier II and tier III cities like Jaipur, Hyderabad, Vijayawada, Ahmedabad, Baroda and Surat. As far as typical investments are concerned, they are mainly done to leverage high gains and tax rebates. Such deals are generally beneficial for both the investor and the developer. 

Around 25 million NRIs in 125 countries are making investments in immovable property in India and show large interests in residential properties than commercial properties, say the data compiled by an Associated Chamber of Commerce.

News Published Under:   Real Estate India, Non Resident Indian (NRI) |