The evolving luxury real estate market in India, with its unparalleled comfort and exclusivity, has attracted investments from across the world. With a wide array of advantages such as prime locations, sought-after amenities, high quality construction and post-delivery care, luxury homes prove to be a secure and profitable investment, especially for Non-Resident Indians (NRIs). Following are a few reasons why luxury home investments form a key asset for NRIs:
Luxury homes tend to be relatively recession-proof compared to other investments during economic downturns. When faced with a recession, these properties are often less affected by market fluctuations due to an ever-growing demand, but limited supply. NRIs can have peace of mind knowing that their luxury home investments are consistently providing them with a stable and reliable source of income.
Higher Rental Yields:
Luxury homes have an incredible advantage of yielding higher rentals compared to investments in standard properties. The demand for luxury rentals as can be seen in tier 1 cities, is mostly driven by affluent individuals and expats who are looking for premium accommodations. NRIs can benefit from the lucrative rental market by investing in such homes, ensuring a steady inflow of income.
Property Maintenance and Management:
Luxury home developers typically offer comprehensive property management services, ensuring that such high value assets are well taken care of. These services include regular maintenance, deep cleaning, security, landscaping, and housekeeping. NRIs can rely on professional property management teams to handle upkeep of their homes, enabling them to enjoy their visits to India without worrying about maintenance issues. Further, well maintained properties command better yields and pricing in the resale market.
Luxury homes in prime locations have the potential to appreciate significantly over time. These exclusive neighbourhoods often attract affluent buyers or renters, leading to a consistent demand for such properties. NRIs can benefit from the appreciation in value, as their investment grows over the years. This appreciation adds to the overall return on investment and offers potential capital gains if they decide to sell the property in the future.
Retirement Options in Established Communities:
Luxury homes provide NRIs with an attractive option for retirement in case they decide to return to India. Investing in a luxury property allows NRIs to retire into a well-established community that offers a host of amenities and services tailored for different age groups. These communities often feature recreational activities for kids and seniors alike, concierge assistance, designed to include healthcare facilities, and a close-knit social environment, providing a comfortable and secure retirement lifestyle for NRIs.
Higher Liquidity Value:
Luxury homes, being relatively niche and exclusive, are in constant demand. This inherent exclusivity translates into higher liquidity for NRIs if they choose to sell their homes for any reason. The limited supply and high demand ensure that luxury homes only appreciate in their value and can be sold at better premiums compared to properties in the mass market segment. This liquidity factor provides NRIs with greater financial flexibility and the ability to liquidate their investment swiftly, if required.
Luxury home investments offer NRIs a rewarding and secure choice for diversifying their financial portfolios. With stability, attractive returns, and a sense of security, these investments provide long-term appreciation and a stable income, making them a wise asset to consider.