Many NRIs (non-resident Indians) have invested in real estate in India. Over the last 10 years, a number of planned cities such as Gurgaon (just south of Delhi) have arisen and grown with incredible speed. People who invested in real estate and the beginning of the real estate boom are now able to cash out and make excellent profits on their investment.
However, it is important to remember that there are many challenges when doing business in India. First and foremost, the bureaucracy is incredibly frustrating for someone who is used to doing business in Europe or the United States. There is also a widespread system of payments to officials that is still in place in government and non-government dealings. There are also the regular power outages, flooding, diseases, and other such problems that have become a “normal” part of life for Indians.
A number of NRI real estate investors in the US are taking advantage of the market and purchasing properties at historically low rates. They also hear stories of their friends making a lot of money in Indian real estate and are interested in those opportunities as well. With the US and India strengthening their ties, it is becoming easier for NRIs to invest in India. There is a scheme called OCI (overseas citizen of India) that allows persons of Indian origin to own property in India. Although this is not dual citizenship, it does allow for more flexibility and mobility in travel.
However, if you are an NRI and are looking at a home mortgage refinance option, think twice about investing in Indian real estate with the money you save. There was a good time to buy a few years ago, but the cost of construction materials, taxes, and interest rates are all rising and it may not be as advantageous as you thought.