Did you know that there are no restrictions on the number of commercial properties an NRI can own in India? However, if you are an NRI investing in commercial property in India, there are a few tips you can keep in mind before investing in a property! Read on to learn more about commercial real estate investment in India for NRIs!
Commercial real estate investment
In India, the commercial real estate sector has always been an attractive class of asset for investors. This is mainly due to the high scope of Return On Investment (ROI) that commercial properties provide. NRIs investing in commercial property in India are experiencing impressive ROIs, and this is one of the main reasons why the commercial real estate market is seeing a boom, irrespective of the market conditions.
Today, with the steady growth of the country’s corporate sector, commercial real estate is seeing an exceptional demand. And with flexible policies from the government, along with the performance of the commercial real estate market, it has become very straightforward for NRIs investing in commercial property in India.
India’s commercial property class is a profitable option for NRIs looking to invest in assets that will provide them with maximum return and generate substantial fixed income. The commercial real estate sector also helps NRIs investing in commercial property in India maintain a low-risk investment profile.
Investing in commercial real estate comes with its benefits. In this article, we will further discuss tips for investing in commercial real estate and how it is one of the most intelligent options for NRIs investing in commercial property in India.
Tips for NRIs investing in commercial property in India
NRIs investing in commercial property in India are in for a very fruitful experience as the commercial real estate industry is one of the most giving sectors in terms of ROIs. As discussed already, the growth in the corporate sector in India has created an exceptional demand for commercial, especially office spaces. This, along with flexible policies from the government, has paved the way for the commercial real estate market in India to thrive.
We have highlighted a few tips for NRIs investing in commercial property in India. Read on and keep in mind the points being discussed here before you choose to invest in a commercial space in India.
1. Location is the primary factor to consider
For any real estate, the location is of great significance. The yield from your commercial space also heavily depends on the value the location holds. The location also affects your commercial property loan interest rate, so it is advisable to consider commercial real estate’s demand and supply dynamics in the area you are looking to invest in. Do a thorough research of how developed the location you have zeroed in before deciding to invest in the property.
Always know that the better the location, the higher the price. At the same time, the better the location, the higher the yields as well! Investing in commercial property in a prime commercial hotspot is going to be more fruitful for you as an investor.
2. High returns and due diligence
Your sole reason to invest in a commercial property is to maximise your returns. As an NRI investing in commercial property in India, which is your home away from home, you have to have your due diligence in place and see if the property will yield you the maximum income it can.
Due diligence is the process of cross- and double-checking significant and necessary information about the property you are planning to invest in. Due diligence will help you judge if your option is a great or just an average property.
With this in place, go for the property that has the potential to give you high returns. (Note: It is ideal to go for properties that will yield you at least 10-12% of returns)
3. Know your options in terms of properties
There are different types of commercial properties you can invest in as an NRI investing in commercial property in India. It is important you learn about them and weigh their pros and cons to understand and make a smart choice.
Right from multi-family dwellings, which is residential real estate with good commercial values, to office spaces, wholesale and retail shops, and more, you have a galore of options to consider before making your choice.
As an NRI, there is no restriction on the number of commercial properties you can invest in. However, you must know that there is a limitation when it comes to certain types of properties like agricultural/plantation land or farmhouse. These can only be inherited by or be gifted to an NRI.
4. Regulatory Framework
Real estate transactions are governed by the rules under the Foreign Exchange Management Act (FEMA). As an NRI investing in commercial property in India, with your Indian passport, you do not require any prior permission to make a property investment in India. As the real estate sector gets more organised, the RBI has simplified the investment rules to garner more foreign investment.
5. Funding and transactions
It is mandatory for all transactions with regard to the purchase of commercial property to be done in Indian currency. As an NRI investing in commercial property in India, it is also necessary for you to have an account in an Indian authorised bank.
Banks today offer several NRI home loans scheme. Get your paperwork in order and verified to obtain a reasonable loan that will suit your needs as an NRI investor. You can hire a lawyer and get your paperwork verified – this will make your loan acquisition process more seamless.
6. Know your property’s safety standards and maintenance cost
The Municipal Corporation Department ensures strict safety standards are met, especially in terms of fire and other contingencies/disasters. The chances are high that NRIs investing in commercial property in India might miss out on inspecting the finer details. It is therefore essential for you to get your choice of commercial property tested property assessment executive.
A property assessment executive will closely inspect plumbing, electrical, and other fixtures of the property. See to it that you get these checked and acquire the appropriate cover for the same.
Apart from this, you must also be aware of the maintenance cost, which is an additional cost incurred by the owner to maintain the building. You will have to meet the cost for building security and general maintenance from your own pocket for commercial properties.
These are a few things you should keep in mind if you are an NRI investing in commercial property in India. You can always hire a commercial real estate agent who will guide you through the entire buying process, from start to finish. As they are experts in the field, commercial real estate agents will be in a better position to foresee issues and tackle them competently.
If you are an NRI looking to invest in a commercial property in India, Market of India is one of the ideal choices. Located in the heart of Chennai, one of India’s most developed cities, Market of India is the largest wholesale and retail market in India. Read on to learn more about what we have to offer in terms of commercial property.
How Market of India is beneficial for traders
Commercial real estate is the most effective investment for NRIs as it yields high Return On Investments (ROIs). The Indian commercial real estate sector is seeing a boom currently, with the growth of the corporate sector. The increased need for office and other commercial spaces has put the commercial real estate market at the top of the table. With no restrictions on the number of commercial properties an NRI can own, NRIs investing in commercial property in India are in for a fruitful experience.
Market of India is one of the best places to own a commercial space, simply because it is the first-of-its-kind organised market in the country. Apart from this, Market of India is also highly beneficial for traders. Here’s why.
- Market of India offers wholesale, commercial, and office spaces for sale in Chennai.
- It provides traders with the opportunity to run their business in the same space as other prominent global brands.
- Market of India is a commercial space that comes with state-of-the-art amenities and features like an advanced security system, 24 access points, a food court, and more.
- In an audit run by a leading firm, Market of India can anticipate over 40,00,000 footfalls per month, which is 40,00,000+ prospective customers for every trader, every month.
- At Market of India, we provide traders with constant marketing support with 20+ ancillaries.
- Market of India gives traders ample space to conduct their business with an 18 kilometers trading corridor, 1,00,000+ sq. ft. of Central Plaza, and 28,000+ sq. ft. of Atrium area.
Market of India is the ideal choice for NRIs investing in commercial property in India. Centrally located, Market of India is one of the most organised markets, bringing together Chennai’s 9 most significant trade hubs, including Koyambedu, Socarpet, Parrys, and more.
If you are NRI planning to invest or have already invested in commercial property in India? Share your experience with us in the comments section below!
Invest in a commercial real estate space in Market of India, Chennai, today! Shops start from ₹40 lakhs!