NRIs Investment Gains Momentum In Indian Housing Sector


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.



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