Mumbai: Prime Choice for NRI Real Estate Investment with its dynamic market, diverse opportunities, and a thriving urban landscape, making it an ideal destination for long-term growth and strategic property investments.
Mumbai: Prime Choice for NRI Real Estate Investment
Mum, the “city of dreams,” has long been regarded as one of the most sought-after places in India to buy a property because of its vibrant lifestyle, constantly expanding infrastructure, and abundance of opportunities. Due to the ongoing increase in housing demand and the high likelihood of your home’s value increasing over time, real estate has been a profitable investment choice for many years. One of the best investments one can make in Mumbai is a residential property, particularly at this time of year when the market for gated communities and luxury homes is rising significantly in the city.
The Rapid Rise of Mumbai’s Real Estate Sector
The volume of home sales in major Indian cities increased by 7% YoY in the first quarter of 2022, from 66,176 units in 2021 to 70,623 units in the corresponding quarter of 2022, according to a report released by IBEF in August 2022. This rise indicates a robust comeback in the real estate market, which is currently undergoing an unprecedented boom due to rapid development and economic expansion.
Indeed, according to the report, real estate investment in India is predicted to reach US $1 trillion by 2030 and account for 13% of the country’s GDP by 2025. The industry is booming as a result of the nation’s rapidly increasing urbanization rates, which are predicted to see 542.7 million people living in urban areas by 2025 and 675.5 million by 2035. Thus, it should come as no surprise that Mumbai, the commercial hub of India, is also experiencing a sharp increase in demand for residential real estate.
Implementation of New Real Estate Regulations
Thanks to new policies that have lowered stamp duty premiums and made the RBI more welcoming to foreign investors, NRIs are now finding it simpler to invest in real estate in their home countries. The Indian government and regulatory agencies have introduced various policies to encourage Foreign Direct Investment (FDI), particularly in real estate. Reforms such as GST and Real Estate Regulatory Authority (RERA) enhance transparency and convenience for non-resident Indians (NRI) investors, along with enticing plans and offers from top builders in Mumbai and across India.
Why Is Mumbai’s Real Estate So Preferable for NRI Investors?
Mumbai’s excellent connectivity to various parts of Maharashtra state and modern living environment have made it a highly sought-after investment destination for non-resident Indians (NRIs).
Indexation benefits
Real estate held for over 24 months in India qualifies as a long-term capital asset, attracting simplified 20% taxation with indexation benefits. NRI purchasers of real estate in India, including Mumbai properties, are also eligible for specific tax deductions under sections 80C and 80TTA of the Income Tax Act.
Lower interest in other investments
Because of the volatility of the market, NRIs are not investing in traditional options like gold, fixed deposits, or equity. On the other hand, real estate investment in the nation is a safer choice that typically appreciates rapidly.
High market value
After the pandemic, the country’s real estate market is booming in places like Mumbai, so now is the ideal time for NRI investments if they want to see a high return on their investment.
Mumbai serves as India’s financial capital
Mumbai, the financial hub of India, offers a platform for professional advancement, and its diverse culture has long drawn foreign nationals to invest in real estate there.
Increasing developments in and around the city
NRI interest in Mumbai real estate has grown as a result of numerous infrastructure projects in the area, including the Coastal Road Project, Pune Mumbai Hyperloop Project, Mumbai Trans-Harbour Link (MTHL), Delhi Mumbai Industrial Corridor (DMIC), and others.
Growing FDI in the nation
Due to the recent decline in the value of the Indian Rupee (INR) compared to the US Dollar (USD), India has seen an increase in foreign direct investment (FDI), with the majority of this investment going into Mumbai’s real estate market. Naturally, these real estate transactions become more profitable for them when they exchange their foreign currency for Indian rupees.
Leading Indian real estate developer L&T Realty is proud of its numerous residential projects in Mumbai, such as Rejuve 360 in Mulund, 77 Crossroads in Ghatkopar, Elixir Reserve and Veridian Powai, and Crescent Bay in Parel. These properties are an excellent option for NRI investment due to their prime locations, opulent amenities, and modern homes.