Published on: Jun 1, 2015 @ 12:48
NRIs investment in the Indian housing sector have been gaining momentum over the years with prices being stable, constant rupee depreciation and attractive long term returns. NRIs have become extremely important for the Indian housing market and have always contributed in a big way to the growth of the Indian housing sector.
Their contribution has been around 8-10 per cent of the total housing sales volume across India. The non-resident Indians are now showing their interest to invest in the Indian housing sector as they are confident about the new government of India and waiting for an investment friendly market.
The constant depreciation of the rupee is considered as an exciting opportunity for NRIs to invest in Indian housing sector. The global economy is stabilizing and India is showing strong signs of revival and the rupee depreciation against the US dollar is also helping the prospective NRIs home buyers. This means that property in India is cheaper and competitive.
According to the findings of Assocham survey, NRI property buyers have shown inclination towards high-end residential and commercial properties in the country. They have variety of products ranging from affordable to luxury homes, villas, plots, commercial buildings and special housing projects like senior homes to choose from. The customers would be given special offers and other value-added benefits. However, flats are mostly in demand and preferred by NRIs as approximately 70 per cent sales are for housing units. Some of the NRIs buy commercial buildings to set up their business establishment in India also.
In order to attract the NRIs customers at a time when there is a sluggish demand in the domestic market, the Indian real estate players have not only organized property shows and exhibitions, but have also expanded their existing distribution chains and entering into strategic partnership to encourage investments from this cash-rich segment. NRI property buyers’ investment is expected to surge by 35 per cent against 18 per cent in the last fiscal year with Bangalore turning out to be the hot favorite followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun, says the Assocham survey.
The sales inquiries are primarily coming from NRIs based in UAE, The US, Singapore, Australia, The UK, Canada and South Africa. Both small and big developers are focusing on the NRI base in the US, the UK and Asia Pacific region this year” said the Assocham survey.
HDFC, the largest mortgage leader of India organized ‘India Homes Fair’ in London on May 30-31, which was expected to have more than 100 projects on display from across India. HDFC had been organizing such exhibitions for the eighth year in a row at a foreign location.
At a time when the global economy is stabilizing and India is showing strong signs of revival, the NRIs confidence in Indian housing market will be boosted further with the introduction of the Real Estate (Regulation and Development) Bill.
Ajay Verma, founder, and writer of The Housing World, a real estate and mortgage news website. He has over fifteen years of rich experience in the above-mentioned industries.