RESIDENTIAL

Mumbai: The Top Location Choice for NRIs Keen on Investing in India’s Real Estate

Published On 19th December 2022 • 4 mins read

Mumbai, the city of dreams - with its bustling lifestyle, ever-growing infrastructure, and the goldmine of opportunities it offers - has long been considered as a much-coveted destination in India to own a home in. For several decades, real estate has always been a lucrative investment option, because the demand for housing is constantly surging and an appreciation in the value of your house is almost always likely over the years. Investing in a residential property in Mumbai is one of the smartest decisions that one can make, especially now when the city is witnessing a substantial rise in the luxury homes and gated communities market.

The Rapid Rise of Mumbai’s Real Estate Sector

As per a report published in August 2022 by IBEF, the volume of home sales across major Indian cities rose by 7% YoY - from 66,176 units in the first quarter of 2021 to 70,623 units in the corresponding quarter of the present year, i.e. 2022. This increase denotes a healthy recovery in the real estate sector, which is now experiencing a massive boom like never before owing to the economic growth and fast-paced developments. In fact, the report also states that investment in India’s real estate sector is expected to touch US $ 1 trillion by the year 2030, while contributing 13% to the nation’s GDP by 2025. The sector is flourishing immensely thanks to soaring urbanisation rates, with an estimated 542.7 million people to live in the country’s urban areas by 2025, and the number expected to reach 675.5 million by 2035. Therefore, it’s no marvel that Mumbai - India’s commercial capital - is also witnessing an ever-rising demand for residential properties.

Implementation of New Real Estate Regulations

NRIs are now finding it easier to make property investments in their native country due to new policies which have reduced premium charges in stamp duty and the RBI becoming friendlier towards foreign investors. The Indian government and regulatory bodies have introduced many policies to encourage Foreign Direct Investment (FDI), especially in the real estate sector. Along with attractive plans and offers offered to NRI investors, reforms like GST and Real Estate Regulatory Authority (RERA) have brought in more transparency and convenience for them, by holding top builders in Mumbai and the rest of India accountable.

Why Is Mumbai’s Real Estate So Preferable for NRI Investors?

The modern living environment and excellent connectivity to different parts of Maharashtra state offered by Mumbai among other factors has made it a highly preferred investment location for NRIs in India.

Indexation benefits

In India, owning immovable properties for over 24 months is deemed a long-term capital asset and is eligible for an indexation benefit with simplified taxation at 20%. Under sections 80C and 80TTA of the Income Tax Act, NRI homebuyers can also avail certain tax deductions for on their purchased properties in India including those in Mumbai.

Lower interest in other investments

NRIs are refraining from making investments in traditional options like gold, fixed deposits, or equity due to the market volatility. Conversely, investing in the country’s real estate is a more secure option which usually comes with high appreciation too.

High market value

The country’s real estate market in cities like Mumbai is booming in the post-pandemic era, making this the right time for NRI investment if they wish to derive high ROI.

Mumbai serves as India’s financial capital

Mumbai, being India’s financial capital, provides a gateway for career growth and its cosmopolitan culture has always made it a major attraction for NRI real estate investment.

Increasing developments in and around the city

Be it the Delhi Mumbai Industrial Corridor (DMIC), Mumbai Trans-Harbour Link (MTHL), Pune Mumbai Hyperloop Project, Coastal Road Project or various other infrastructural developments in and around Mumbai, these have contributed to the growing interest of NRIs in the city’s real estate.

Growing FDI in the nation

India has been seeing increasing FDI in recent times due to the plunging value of the Indian Rupee (INR) against the US Dollar (USD), with a major portion of this investment being made in Mumbai’s real estate sector. Converting their foreign currency into INR naturally makes these real estate deals more profitable for them. L&T Realty, the leading real estate developer in India, boasts multiple residential projects across Mumbai including Elixir Reserve and Veridian Powai, Crescent Bay in Parel, 77 Crossroads in Ghatkopar, and Rejuve 360 in Mulund. The contemporary homes and luxurious amenities at these properties and their strategic locations make them the perfect choice for NRI investment.