In recent years, Non-Resident Indians (NRIs) have been turning to commercial real estate investments in India as a way to make their money work for them. With the Indian economy growing steadily, NRIs can benefit from investing in India’s booming real estate sector.
Many advantages come with investing in commercial real estates, such as high returns on investment, long-term capital appreciation, and diversification of the financial portfolio, among others.
One of the main benefits of investing in commercial real estate is that it offers higher returns than residential property. As the demand for commercial properties increases due to growth in the Indian economy, so does its value. It provides investors with an opportunity to maximize their ROI. Several other reasons benefit NRIs through commercial real estate investment in India.
Reasons why NRIs should invest in the commercial real estate market
1. Strong economic growth
As the economy of India is fast growing, businesses are expanding, and consumer spending increases, demand for commercial real estate is rising. It creates opportunities for NRIs to invest in commercial properties that are likely to appreciate and generate rental income.
2. Government support
Indian government is actively encouraging foreign investment in commercial real estate by offering incentives and simplifying regulations. It can make it easier for NRIs to invest in commercial properties and take advantage of potential returns. The RERA and GST Act has directly boosted all types of NRI investment in India.
3. Increase in demand for commercial properties
Indian millennials are fast-adapting to start-ups and entrepreneurship, resulting in a rise in demand for commercial properties in India. The rapid growth of IT hubs, logistics, and distribution centers due to the increase in e-commerce ventures is also an added-on reason for the increase in demand for the commercial real estate sector.
4. Better rental yields
Commercial properties such as office buildings, retail centers, and warehouses tend to have higher rental yields than residential properties. It can provide a steady stream of rental income for NRIs rather than investing in residential plots.
5. Tax benefits
The NRIs can take advantage of tax benefits when investing in commercial real estates, such as deductions for mortgage interest, depreciation, and other expenses. Having a real estate developer in the loop can help simplify investing and loan sanctioning while you stay abroad.
6. Diversification
Investing in commercial real estate allows NRIs to diversify their portfolio by spreading investments across different asset classes and geographical locations, reducing the overall risk of their portfolio. Also, Indian real estate growth looks promising and shows rapid commercial real estate sector growth.
7. Establishing a business
Investing in commercial real estate in your own country can also provide NRIs with an opportunity to establish or expand a business in that country.
It’s essential to take professional advice and consider the market conditions, potential returns, and risks before investing in the commercial real estate market.
Benefits Of Commercial Real Estate Investment For Nris
Potential for higher returns: Commercial real estate investing can produce higher returns than residential real estate investing or other types of investments. It is because commercial properties are frequently leased to businesses, which pay higher rents than individuals, and most tenants stay for long periods of time, eliminating the need to find a tenant on a regular basis.
1. Long-term appreciation
Commercial real estate tends to appreciate over time, providing a long-term investment opportunity for NRIs. Additionally, as businesses expand, they may require larger spaces, increasing the value of a commercial property.
2. Potential for rental income
Commercial properties can generate steady rental income, providing a reliable source of passive income for NRIs. It can be particularly beneficial for NRIs looking for a long-term investment with a steady income stream.
3. Diversification
Investing in the commercial real estate market can help to diversify an NRI’s portfolio, reducing risk by spreading investments across different asset classes.
4. Tax benefits
NRIs will be able to take advantage of tax benefits when investing in commercial real estates, such as deductions for loan interest, depreciation, and other expenses. It can make commercial real estate more tax-efficient than other types of investments.
Before investing, you should consult a tax advisor or a legal real estate expert. Having a real estate developer in the loop is thus extremely beneficial when attempting to invest in the Indian market while abroad.
Real estate experts for NRI investment guidance
We all know it is important to analyze the location, neighborhood, growth potential, security, connectivity, and amenities in-depth before investing in any plot or property. Having a real estate developer in a loop can provide you with all the facts, the latest trends, and information per the current market growth analysis.
G Square Housing is South India’s largest and Tamil Nadu’s No.1 real estate developer. having successfully delivered dream investment opportunities to 6000+ customers already, we are the leading real estate developer spread across various cities like
We have several residential, commercial, and industrial projects in and around these cities, helping people settle, expand their business ventures, and take that leap of growth in both personal and professional life.
To Conclude
NRIs can benefit from commercial real estate investments in India as well. The current real estate market has a lot of potential in commercial real estate, so your demand and investment options are very well aligned.
To learn more about the exciting commercial real estate investment opportunities in South India at an affordable price contact us via
Call +91 8939540008
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