Saturday 12 December 2015

NRI investment on the rise - Where and why?


Indian real estate has been looking forward to the increment in NRI investors in the real estate market of India. In lieu of the demand of the market and to surge the demand even further there has been the recent lifting of the restrictions of the FDI and foreign capital too in the real estate wherein the financial and the realtors remark that there would be a difference in the real estate sector due to this. Many opined that the affordable sector would also get benefited but others viewed that as the cost of such foreign capital would also be very high and that would not keep the affordable housing segment affordable any more. Notwithstanding all these arguments the NRIs were particularly eyeing on the rapid real estate market expansion of India through realty auction portal . There is of course the reason that India is their mother land and any one would like to keep a property here especially in their home town or the place of their origin.
The statistics and the surveys say that the NRIs of the Middle East and the Gulf countries are increasingly becoming more interested in the properties of India. They are eyeing mostly the metropolitan s and in a survey conducted by an exhibition company conducted in the UAE it was revealed that Mumbai and Bangalore stood at 20th and 22nd position respectively in the top 25 preferred destinations in the Asia Pacific region. The present scenario of the real estate also relates the same story and the Realtor's state that most of the enquiries are from the Middle East and there have been many enquiries and more in number from the gulf countries. Although there are enquiries too from other places like NRIs residing in Australia, Malaysia, US and Canada.
There has been another reason also which is the Rupee depreciation which has increased the interests of the NRIs in the Indian properties. The expert firms and the global real estate consultants opine that due to the current depreciation of the rupee the spurt in the enquiries of the NRIs has jumped up by 20 percent. They add that the residential sales got a boost due to this from the NRI investors which has been low in the ongoing quarter from the native market. This certainly helped the real estate sector in balancing the sales. The investments in this year have gone up by 50 percent and the real estate agents and experts are optimistic that if the Rupee maintains the current level of value more sales are in the offing from the NRI investors.

NRI Investment Trend

The market trends for NRI investment relate that there is a pattern of the investment of the NRIs in Indian real estate. The NRIs from countries like Malaysia have shown a preference towards the cities of Southern India. The NRI investors from countries like Canada prefers cities of the northern parts of India like Chandigarh, Delhi and the NCR. The NRIs from the US prefer to invest in cities like Bangalore, Hyderabad and Chennai where the IT development and influx of IT companies are more. because  of Understanding the legalities of a sale deed .The investment volume of the middle and the high income class prefer to invest in properties in the price range of Rs. 50 lakhs to Rs. 1 Crore or even more. The NRIs from the gulf region are more observed to invest in the properties of the price range of Rs. 15 lakhs to Rs. 25 lakhs. The most popular among the configuration of the apartments that the NRIs prefer are 2, 3 and 4 BHKs. The developers are also offering attractive schemes to allure the NRI buyers and few of the parameters that the nonresident buyers look for are tie ups with financial institutions, totally licensed projects and original allotment documents which they insist on the day of the booking itself.

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