Real Estate in India News 2024: After residential, NRI Investors Supercharged with India’s Commercial Realty S – Times Now

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Real Estate in India News 2024: After residential, NRI Investors Supercharged with India’s Commercial Realty Sector

Real Estate in India News 2024: India’s real estate sector is witnessing a distinct shift in the investing landscape of NRI investors. While residential assets have always been the focus, the year 2023 saw a huge increase in NRI interest in commercial real estate, indicating a significant shift in investment habits. The Indian real estate sector has defied economic volatility, reaching USD 265.18 billion in 2023, with an anticipated surge to USD 828.75 billion by 2028. Notably, the market rebounded, witnessing robust increases in new property launches and residential sales.

Positive economic indicators, including stock market recovery and job opportunities, signal heightened demand in housing societies and commercial property. A pivotal shift in 2023 saw NRI investors redirecting focus from residential to Grade A commercial real estate, with an expected 9.2% CAGR growth between 2023 and 2028.

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Shiv Parekh, Founder & CEO, hBits- Fractional ownership of real estate platform said that the allure of commercial real estate lies in its potential for high-yield returns, distinguishing it from traditional residential investments. Therefore, NRIs diversify their portfolios by investing in various commercial properties. This is witnessed due to the desire for commercial stability, increased ROI and favourable regulatory reforms.

Moreover, compared to residential investments, commercial real estate offers higher returns driven by increased rental income and capital appreciation, albeit with higher risk but less management complexities due to the advent of fractional ownership of platforms.

Shiv Parekh from hBits highlighted that the current trend underscores NRIs’ sophisticated approach to real estate, adeptly balancing risk and reward in their investment strategies and summarised its impact on the commercial real estate market and the favorable government policies:

Impact on the Commercial Real Estate Market

NRI investments have significantly shaped the Indian commercial real estate landscape, driving a surge in property prices and demand for prime spaces in major cities. The capital infusion from NRIs has heightened competition, leading to increased property values, particularly in sought-after locations like Bangalore, Delhi-NCR, Mumbai, and Hyderabad. The demand for commercial spaces has risen, with NRIs actively seeking opportunities in the growing organised commercial sector. This trend has transformed India’s commercial real estate, contributing to its vibrancy and evolution.

In terms of case studies, notable transactions involving NRIs in 2023 include the acquisition of premium office space in Bangalore, highlighting the city’s tech hub status, and a collaborative NRI investment in a state-of-the-art warehouse facility in Mumbai. These transactions showcase NRIs strategically aligning their investments with the dynamic shifts in India’s commercial real estate sector.

Government Policies Impacting NRI Investments

The government has implemented progressive policies to encourage and simplify Non-Resident Indian (NRI) investments. The Real Estate (Regulation and Development) Act, 2016 (RERA) stands out as a key initiative, enhancing transparency and accountability in the real estate sector. Complemented by simplified guidelines under the Foreign Exchange Management Act (FEMA), these policies streamline NRI investment processes, fostering an environment of trust and transparency.

The investor-friendly nature of these regulations reflects the government’s commitment to boosting NRI confidence, positioning India as an attractive destination for long-term investments. “Beyond regulatory frameworks, the paragraph notes the influence of critical economic indicators, including GDP growth, employment rates, and industrial development, on the commercial real estate market in India. A thriving economy, as reflected in these indicators, further adds to the appeal of the Indian real estate sector for NRIs, making it a compelling investment option,” Parekh noted.

2023 has been a transformative year for India’s commercial real estate, significantly influenced by NRI investments. Shifting from residential to high-yield commercial properties, NRIs are tapping into the sector’s robust growth, driven by favorable economic trends and supportive government policies. This strategic realignment towards diverse commercial investments is not only providing lucrative returns but also contributing to the vibrant evolution of India’s real estate landscape. As the sector continues to grow, NRI investors are poised to play a crucial role in its future development, symbolizing a blend of opportunity, innovation, and economic progress.

(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of TN Network.)

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