Indian rupee day by day a major fall against the Us dollar in recent months, Non-Resident Indians (NRIs) have begun scouting for property buys in India, according to reports. This comes after this Situation in the Indian residential real estate market over the previous years, which was aggravated by demonetization and establishment of RERA. Added to this, NRIs were approach about investing in Indian real estate with hope for lucrative returns due to lack of transparency, safety issues and fears of sale propositions.
However, the trend is changing. RERA has hugely influenced the Indian realty industry for good. Transparency and consolidation can help the market evolve and shape the industry in a positive way.
Mr Sunil Sisodiya, Director, Geetanjali Homestate Pvt Ltd, said that around 30-35% of NRIs are looking to invest in property as an asset class and the number is increasing year by year.
However, besides the Indian rupee falling angle, there are several other factors that making Indian real estate attractive for NRIs.
Here are some point of them for NRI Wants to invest in Indian Property Market:
- NRI’s can leverage the power of their additional income by investing in properties because prices have corrected over the past few years.
- In terms of location, other than metropolitan cities and Tier-1 cities, Tier-2 and Tier-3 cities has gained pace. “Adding to that the rate of appreciation which is much more due to fast infrastructural development, property investments in India could be a smart move for NRIs right now,” Mr Sisodiya Said.
- The United States or the Middle East are more interested in settling down in India “NRI’s are attracted to the commercial real estate, which is a different kind of investment, which offer good rental income as well as capital appreciation.
- The weakening rupee gives more power to other currencies and the current sluggish market enables them to buy properties at a cheaper rate in India. The falling rupee has made it advantageous for those earning in foreign currencies and spending the same to buy property in Indian Rupees. Property buyers get more square feet of space for the same amount in foreign currency.
- The new regulatory norms has brought in transparency and accountability on part of real estate developers which has resulted in a win-win situation for property buyers. Home buying is regaining traction, RERA has made it better – and in a situation where property prices at primary level are down by 10 to 15 percent, it definitely is a scenario where the NRI buyer is back.