» Why NRIs Are Shifting Towards Commercial Real Estate In India?

July 16, 2020

In India, the real market for commercial one is far better professionalized and organized than the estate market of the residential sector.

NRIs are always a popular choice for the real estate developers in India and in the coming time also, it will be the same. It is not because of the financial capabilities of NRIs but they are the favorite option for real estate developers as they have an excellent ability to boost and gauge the investment trend in a new direction. For the last two years, there has been a reduction in the rate of capital appreciation that has resulted in the slowdown of the real estate market. This has shattered the expectations of the NRIs. and it was not in accordance with the investor’s expectation.

It has pushed the NRI investors to seek for the other great opportunities in the real estate connected with the commercial one as the commercial real estate is offering excellent capital appreciation along with rental yields. The whole scenario has been changed as there is a change in demand and demand is rising for the commercial spaces. These commercial spaces are required for the large-scale space requirement along with the Real Investment Trust’s formation which includes Grade A offices, logistics centers, and IT parks.

There are many cities in India such as the National Capital Region or NCR, Mumbai, Bengaluru, Hyderabad, Chennai, and Pune that are witnessing a vibrant demand for commercial spaces, Grade A offices, co-working units. The demand has been changed as all these cities have the demand for office spaces as the generation of business is doing great in these places. Although the demand is not matched with the supply. This imbalance of demand and supply has assured the future appreciation of office spaces in these areas. So, all these factors have pushed the demand for commercial projects.

However, this information is out for the NRI investors, but all the investors can gauge the trend of the market at the right time. Even, when the NRI investor keeps an eye on the market trend, there are still other pre-conditions that must be considered before finalizing the decision for investment. These are as follows:

Citizenship Rule: The NRI investor must have a valid Indian Passport and it is a mandatory condition for NRI and no other approval is required. But if they are the citizens of neighbors of India such as China, Pakistan, Afghanistan, Nepal, Iran, Pakistan, and Bangladesh.

Type of Property: NRI can make investments in commercial and residential properties in the country except for agricultural land, farmhouses, and plantation properties. But they can receive and give such kind of properties as gifts.

Banking: all the transactions will be completed via regular banking channels only and it will be done via Indian currency through the NRI account.

Gifted or Inherited immovable: NRI investors have permission to rent and lease such kind of properties.

NRIs must pay attention to basic rules of investments and hire a good lawyer will help you in handling such cases.