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Right time for NRIs to invest in Indian realty market
With the current decline in rupee against dollar, do the NRIs see Indian realty market as a lucrative option for investment?
‘Yes!’ the NRIs, developers, promoters and property experts say. The reason: The Indian currency has fallen by around 20% against the US dollar. This has triggered a substantial rise in the volume of property-related enquiries from the NRIs, as this is a great opportunity for them to invest in Indian real estate. They can have very good returns on their investment; but to avail this opportunity they have to make their decisions faster because the price of real estate is also growing here.
Many NRIs are even buying multiple units for investment purposes. In the last six months, developers and promoters have sold more than 300 units to NRIs in the NCR markets like Gurgaon, Noida, and Kundli.
Anshuman Magazine, the chairman and managing director of CBRE South Asia Pvt Ltd, says: “With the rupee depreciating significantly and property prices remaining flat in the recent past, it is a good opportunity for the NRI’s to invest in the market. Although, overall investment sentiment is down, the long term growth fundamentals of the Indian real estate market are intact.”
Ravinder Taneja, the vice-chairman of TDI Group, says: “The returns on property investments are always higher, compared to other investments, due to its minimal volatility and stable appreciations. This is also a reason that developers, investors and end users keep augmenting the realty market. The current decline in rupee against dollar has further attracted NRIs to invest in property. This temporary phase of slowdown in the rupee will fetch more to realty from NRI’s who want to buy property in India.”
Rakesh Yadav, the managing director of Antriksh Group, says: “The fall of the rupee against the dollar has brought cheer to at least one section, the NRIs. This is the right time to buy property. We are getting a good response from Indian buyers who live abroad.”
Pranav Ansal, the vice-chairman of Ansal API, says that the unprecedented decline in the value of rupee has actually become an opportunity for NRIs to invest in the country. “The NRIs are cashing in on this deprecation and are making a beeline to buy property in India. The sluggish growth rate in the developed economies, especially in Europe, has only added to the keenness of the NRIs’ to invest in their homeland. Our company is offering attractive discounts to NRIs to buy or invest in its property in India.”
“We are actively participating in international exhibitions that are held in countries having sizable NRI population like the UK (London), Middle East (Dubai), Singapore, Bangkok, etc. Our endeavor is to reach out to the NRIs directly and convince them to invest in their homeland. We are happy that the response to our offers has been overwhelming,” Ansal says.
Navin Raheja, the chairman and managing director of Raheja Developers, says: “The depreciation in the value of rupee is effectively 20%. This is the right time for the NRIs to invest in the Indian real estate; we have received several inquiries and some of them have even bought into our projects like Raheja Revanta, Raheja Aranya, Raheja Oma, etc.”
“Undoubtedly, the current decline in rupee has made homes in India increasingly cheaper in dollar price terms. This is an attractive proposition, especially at a time the real estate sector in the developed markets remains depressed. Add the 8-10% discount that builders offer on down payment and the effective price for an NRI buyer drops by more than 30%,” Raheja says.
Anil Sharma, the chairman and managing director of Amrapali Group, says: “The NRIs are a huge segment of the potential buyers for realty-related inventory, particularly in the NCR. We believe that the appreciation of the dollar may catalyze the realty markets even in Tier I and II cities. Nearly 25% of the bookings in our projects has been by the NRIs, compared to just 10% in our earlier projects. Now, to leverage on the trend, we are marketing ourselves in the US and Canada, as this is just the right time to invest in India.”
Sanjeev Srivastva, the managing director of Assotech Limited, says that investment in real estate market is always profitable for investors. “This is one of the fastest growing sectors in India and it has very good prospects. Indian property is 20% cheaper if anyone buys in dollars, as the Indian currency has declined by nearly 20% against the dollar. This is a great opportunity for NRI who wants to invest in Indian real estate. They can make good returns on their investments. However, it will help if they make their decisions faster, as the price of real estate is also growing.”
“As luxury apartments have been a major attraction for the NRIs, they can invest in ready-tooccupy units or projects nearing completion for better returns. Investment in Tire II and Tire III cities can be more beneficial as these cities have seen more appreciation than the metro cities,” Srivastava says.
Manav Singh, the chairman of Imperial Holding Pvt Ltd, says that this is an opportune moment for the NRIs to get a bigger bang for their dollar.
Neeraj Gulati, the managing director of Assotech Realty, says: “Although the depreciating rupee will create a lot of trouble for our economy, and the developers too, at the same time, it is a boon for the NRIs as they will get nearly 15% benefit on property purchase from Indian developers. The RBI is supposed to take corrective measures to strengthen the rupee, so it makes good sense for the NRIs to take advantage of the situation and maximize their benefits now.”
Vikas Gupta, the joint managing director of Earth Infrastructure Ltd, says that this is the best time for investment in the Indian real estate market. “The 20% rise in the value of dollar vis-a-vis rupee, and the 10- 12% discount offered on down payment plan for the NRIs translates to a total of 32% discount on Indian property. Thus, the NRI’s get to buy property at two-thirds the actual price on a down payment plan. The impact of rupee depreciation has resulted in 10-15% rise in NRI remittance into the NCR properties in the last eight months,” Gupta says.
Source: Times Property, The Times of India, Delhi