In the whole debate about how the COVID-19 pandemic impacted Indian economy – and what was expected from Union Budget 2021-22 to revive it – the very important market community of non-resident Indians (NRIs) cannot be side-lined.
As per the World Bank, India is said to have received inward remittances of approx. USD 75.9 Bn in 2020, which is nearly 2.9% of the overall GDP.
NRIs are among the most important drivers of residential and commercial real estate in the country. As such, the NRI community had high expectations from Union Budget 2021-22 - and while the hoped-for key tax reforms did not materialize, they were not disappointed.
What did the budget offer NRIs?
The additional housing supply that ensues from the one-year tax holiday extension for affordable housing projects has favourable implications for both resident Indians and NRIs, since new supply helps keep prices in check. Affordable housing currently accounts for more than 35% of the overall housing supply in the top 7 cities - which are also of highest interest to NRI investors.
A generous pipeline of housing supply by branded developers assures NRIs of reliable investment options even in affordable housing. The rental yields of budget housing are currently better than in any other budget segment, including luxury real estate.
Anuj Puri, Chairman of ANAROCK Group is a highly respected industry authority and thought leader with 30 years' experience in leveraging Indian and global real estate opportunities. His company ANAROCK has a staff complement of over 1800 qualified and experienced professional, with offices in all major markets in the country, dedicated services in Dubai and a global footprint with over 80,000 preferred channel partners.