What Are The Advantages of Investing in Indian Luxury Real Estate for Non-Resident Indians in 2022?

Luxury real estate in India has been moving very smartly in the recent years. The demand for luxury homes in India both from Indian luxury buyers as well as NRIs has been particularly high in the recent years. In fact luxury homes in India have been one of the most sought-after and reliable assets. And when it comes to expensive and opulent assets, the investment size and return possibilities remain unmatched.

Despite the exorbitant input costs, the ultra-wealthy swear by this unique financial product. As economic activity resumes, wealthy investors aggressively seek out luxury investments. Here are some persuasive arguments suggesting that there has never been a better time to invest in luxury residences. The value of the rupee is primarily determined by global economic variables and India's foreign currency reserves. Recently, the declining value of the rupee versus the dollar has offered investors with a rare chance to invest in luxury real estate. As a large proportion of luxury investors are Non-Resident Indians (NRIs), the reduced rupee value makes it more affordable for them to purchase a luxury property. Reduced input costs have encouraged this class of investors to invest more in India's luxury real estate.

According to a recent poll conducted by a leading luxury real estate agency almost 50% percent of non-resident Indian (NRI) real estate investors have made luxury property investments in India with a clear motive of booking profits.

Historically, even the ultra-wealthy chose to invest in conventional assets such as gold, fixed deposits, and bonds. Nonetheless, the Coronavirus epidemic and related obstacles have substantially diminished the return potential of these tools. The returns on the majority of fixed-income investments in nationalised banks and the bond market are both below 5 percent.

Amidst all of this, wealthy investors are choosing luxury real estate and anticipate a decent return within a relatively short time horizon of 5-7 years. With the pandemic in the backdrop, the Reserve Bank of India (RBI) has not increased the repo rate for a very long period, and this is the cause for the availability of abundant credit at acceptable rates.

Professional investors in luxury houses are increasingly interested in obtaining lower long-term finance and investing in luxury residences. In addition to residential buildings, the luxury market is also seeing an increase in premium office spaces. The investors are actively evaluating huge and opulent office premises and anticipate substantial returns once the economy regains its footing.

Similar to the inexpensive and non-luxury residential segments, the luxury section of the real estate market is recovering, and prices are not sky-high. The ultra-wealthy investors are still in a strong position to negotiate and get favourable terms. In metropolitan locations such as Mumbai and Delhi, upscale real estate transactions are taking place in South Delhi and Lutyen's zone.

At least until 2022, real estate analysts predict that investors will find some of the greatest deals and save a substantial amount on luxury investments. In addition, the desire of real estate developers to dispose of unsold inventory has provided investors with attractive luxury investment opportunities. Although luxury residences are expensive to purchase and have high input costs, they provide investors with a strong rental income.

Investing in luxury real estate in India after a comprehensive examination of the local real estate market is certain to provide fantastic returns. As the real estate industry anticipates a full-scale recovery in 2022, the luxury real estate market also presents spectacular investment prospects. The luxury real estate market in India seems to be on an upward trend and this seems like the ideal time to invest and book your profits in the luxury real estate segment in India especially if you are a non resident Indian.