The real estate sector is one of the most worldwide recognized sectors. Real estate investment is the purchase of a future income stream from property and can offer several advantages over many types of investments like stability, inflation hedging, potentially higher returns, and diversification. The growth of this sector is depending upon by the growth of the corporate sector and the demand for office space as well as urban and semi-urban accommodations.
NRIs were apprehensive about investing in Indian real estate due to lack of transparency, safety issues and fears of sugar-coated sale propositions. However, the trend is changing now that a year of RERA has hugely influenced the Indian realty industry for good. Transparency and consolidation can help the market develop and shape the industry in a positive way. In Realty India is a strong market for investments. NRI’s can get benefit of their additional income by investing in properties because prices have corrected over the past few years. No matter how much one loves living abroad, having a house back home in one’s own country gives a sense of belonging. Moreover, wherever you stay, at some point you are sure to say ‘Take me home’. NRIs can earn from their investments in real estate form of rental income and short- term or long-term capital gain. Having an extra property in India, would pose as an additional source of income for NRI’s. An NRI’s are allowed to invest in both types of residential and commercial properties in India. However, any farm house, any agricultural land can be owned, only if it is inherited or gifted to the NRI. Even though NRIs have to pay tax on the rental income, a part of it gets compensated under Section 80 (C) under the Income Tax Act. They can claim benefit of deduction for repair and maintenance of property. The real estate industry has observed tremendous growth in the last decade and is expected to appreciate by 10-15% per annum. Real estate properties can be passed onto the next generation, this is one such investment which will continue to grow and prosper. No other company or National Stock Exchange has topped the market in a row during the last decade.