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New DelhiOne hour ago
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- Despite Kovid-19, investment of 99 thousand crores got in FY 2021
- NRIs living in Gulf countries invested the most
In the last few years, the government has made good policies for the real estate sector. This is the reason why the investment of Non Resident Indians (NRI) in the real estate market of India has increased. According to a report by real estate advisory firm 360 Realtors, last year i.e. in FY 2021, NRI invested about $ 13.3 billion in India’s real estate market for about 99 thousand crores rupees. It grew by 6.4% over the same period a year ago. The report says that despite the Kovid-19 epidemic, NRI investment in India’s real estate market has boomed.
Bad impact in first quarter of FY 2021
The report noted that NRI investment in the Indian market declined by 35% in the first quarter of FY 2021 due to the global lockdown. During this period, the global medical crisis, along with the slowdown in the economy and slowing down of business activities, had a negative impact on the sentiment of NRI investment. However, the situation improved significantly in the distance quarter and NRI started buying due to attractive payment plans. This was the time when the government raised cash in the market to improve the economy. Apart from this, home loan rates were also reduced.
NRI investment may increase by 12% in current financial year
The report noted that investors’ focus on real estate has increased due to attractive payment plans and low risk. Apart from this, there are many other reasons why investment in real estate market is increasing. Analysts quoted the report as saying that the Indian real estate market could invest around $ 14.9 billion to about Rs 1.11 lakh crore in FY 2022, ie in the current financial year. It will be 12% higher than the previous financial year.
NRI investment increased from second quarter last year
Ankit Kansal, founder and MD of 360 Realtors, said that NRI investment had fallen by 35% in the first quarter of the last financial year. After this the developers along with the government also introduced attractive schemes for the buyers. This led to 18% growth in NRI investment on an annual basis in the second quarter. Government and developers’ plans also saw an impact in the third and fourth quarters. These two quarters reported annual growth of 24% and 22% respectively. Growth was also benefited from the reduction in stamp duty by states like Maharashtra and Karnataka.
41% investment from Gulf countries
The Gulf Cooperation Council (GCC), the Gulf Cooperation Council, had the highest share in investment in the real estate market in FY 2021. According to the report, GCC accounted for 41% of the total NRI investment. This was followed by the US with 17% and Singapore with 12%. Apart from this, NRIs living in countries like Canada, UK, Germany, Kenya, South Africa also invested in India’s real estate market.
Digital technology will change the nature of business
The report states that the use of digital technology will prove to be a game changer in the real estate market. Both developers and brokerages have understood the importance of digital assets. Digital launches, 3D viewing of properties, augmented and virtual reality-based design concepts, virtual property shows and online transactions have transformed the real estate market. Using this technique, both buyers and sellers have come out of the realm of negotiation by sitting in a closed room. In other words, the future picture looks very positive for the real estate industry. This will also give a boost to NRI buyers. The use of digital technology has also freed NRI buyers from the hassle of coming to India to see the property.