Top 5 Reasons Why NRIs Should Invest in Hyderabad Real Estate

Top 5 Reasons Why NRIs Should Invest in Hyderabad Real Estate

Are you an NRI feeling the pull of home but unsure where to land? Or seeking a profitable investment option in India? Hyderabad’s fast-growing economy, diverse range of properties, and attractive returns on investments make it the perfect destination for you to invest. Invest in Hyderabad real estate – here are the top 5 reasons why it is the smartest move for your future.

Earn Passive Income

Hyderabad is rapidly emerging as a goldmine in the Indian real estate market providing investors a stable and long-term income. The city’s strong and reliable economy supported by the  IT sector and infrastructure development make it a perfect destination for building a successful real estate portfolio.

According to reports, the average rental income generated from properties in Hyderabad is much higher than the national average, ranging between 5% to 8%. This situation significantly helps investors in maintaining sustained financial stability.

However, when considering investments in Hyderabad, it’s wise to explore emerging neighbourhoods with increasing demand for rental properties. Buying furnished and secure options not only enhances the property’s appeal but also adds to the gross market value, attracting a diverse tenant base. This strategic approach allows the investors to earn higher returns on investment and contributes to the creation of a strong real estate portfolio with enduring value.

Benefits of Currency Exchange 

NRIs hold a unique edge in Hyderabad’s real estate landscape, thanks to favourable currency exchange rates. This benefits them to secure properties at a discounted rate compared to their home currency, increasing the potential returns on their investments.

Even though the growth of the Indian economy in recent decades, the influence of global currencies such as the USD, Pound Sterling, Euro, Riyal, and Dirhams has consistently strengthened against the rupee. Regardless of current interest rates, the value of your investments in USD, Pound Sterling, or Euro is likely to increase in appreciation. This translates to the prospect of earning more substantial returns over time.

Growing IT Sector and Job Market 

In Hyderabad’s  IT hub, where big names like Google, Microsoft, and Amazon thrive, there is a constant demand for rental homes due to an ever-expanding job market attracting skilled professionals. 

This demand for rental accommodation offers a golden opportunity for NRI investors. For NRI investors, it’s an easy entry into this picture through strategic property purchases which can provide a good rental income with growing property values. Investing in Hyderabad’s real estate market is like planting seeds for future wealth, especially as the state’s Gross State Domestic Product (GSDP) grows at a rate of 12.6%, surpassing the national average of 10.5%  according to statistics of the Government of Telangana and other sources. NRIs can make the most of this growth for lasting financial gains. 

Tax Benefits and Government Policies  

The government offers a wide range of tax benefits that make property investment even more easy and convenient for NRIs. They can avail exemptions in taxation by declaring properties for personal use, enjoy deductions on rental income for expenses like municipal taxes and maintenance, and benefit from a minimal 1% withholding tax on property purchases. Additionally, capital gains tax relaxations through Double Taxation Avoidance Agreements and transparent digital property transactions further add to the growth of investments in Hyderabad.

Hyderabad’s government policies play a crucial role in attracting NRI investments. The implementation of the Real Estate Regulation and Development Act (RERA) ensures transparency and accountability in the investment. Further liberalisation of Foreign Direct Investment (FDI) norms opens wide doors for joint ventures. Additionally, the emphasis on digital property transactions eases the investment process for NRI investment. These factors collectively contribute to making Hyderabad a secure and perfect destination for NRIs looking to build a diversified and profitable real estate portfolio.

Hyderabad’s Promising Future 

Hyderabad is also on the way to becoming a diversified hotspot welcoming key industries such as biotechnology, pharmaceuticals, aerospace, and defence. This diversification not only strengthens the city’s economic foundation but also creates employment opportunities, attracting both local and global investments.

 As Hyderabad moves towards a global city, non-resident Indians (NRIs) investing in real estate and property acquisition can expect substantial returns. 

The city’s alignment with the growing industries and long-standing government support positions it as a promising and perfect destination for long-term financial growth. For NRIs seeking not just a property but a profitable investment, Hyderabad is a treasure island.

In the third quarter of 2023, Hyderabad saw a big increase in the number of new homes being built. Almost 24,900 new units were added to the market during this time. This surge made up 21% of all the new homes introduced in the top seven cities of India, according to information from Anarock. Compared to the same period in the year before, Hyderabad had a noteworthy 60% increase, and there was a remarkable 137% jump from the previous quarter.