Chennai Ranks 2nd on
list of property investment destination for NRIs
The Indian Rupee's
sharp dip against the US dollar has made temptations for non-resident Indian
(NRI) to buy property with realtors expecting an increase of 35 % in business
enquiries from the expatriates this year (2013), reveals the associated chamber
of commerce and industry of India (ASSOCHAM) recent findings.
Releasing the
ASSOCHAM paper on “Falling Rupee sparks property boom from NRIs”
Mr. D. S. Rawat, Secretary
General, ASSOCHAM said, “With the rupee
riding low against the US dollar, Indian residents are looking to accelerate
investment plans back home”.
The rupee has fallen
by nearly 34% against the US dollar
since August 2011 and crossed 65 against the dollar.
The survey
highlighted that Bangalore is the most favourite property investment
destination for NRIs followed by
Chennai (2nd),
Mumbai (3rd),
Ahemdabad(4th),
Dehradun (5th).
A lot of Punjabis
settled in Canada and UK are expected to invest more in Chandigarh sub-urban
like Dera basi, Mohali and Panchukla.
This time, there is a
lower demand for the Delhi-NCR market, adds the ASSOCHAM survey.
ASSOCHAM conducted a
random survey of about 1,250 real estate developers in Delhi - NCR, Dera Basi,
Mohali near chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune,
Dehradun, Chennai etc...
The survey reveals that interest for buying
property by NRIs have increased due to favourable exchange rates.
“The Indian property
developers are anticipating a 35 % surge in enquiries to NRI - based purchasers as the rupee dip
against the dollar past 6 months. The decline in rupee has increased property
sales because people want to get value for their money”, added majority of
developers.
Mr. Rawat also said,
“It’s definitely not good news for people back at home, but for a NRI, this is
definitely the best time to invest. At the moment any non-resident Indian
buying a property in India can save around 20% to 30 % on his / or her property
value.
The enquiries may go up further if rupee
continues to slide, adds majority of the real estate developers.
The majority of real
estate developer said, the NRI traffic is coming primarily from the UAE or / or
Gulf region, US, Singapore, Australia, UK, Canada, South-Africa etc. The demand
is more for high end properties and commercial buildings.
As per the recent
estimates, about 50 lac Indian expatriates live in the 6 Gulf Co-operation Council
(GCC) countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia & the UAE, and they remit close to $ 3,000
crore to India every year & have
been growing over the years.
Buying a property
back home is the top-most priority of every NRI, at least for those living in
the foreign countries as the weakening rupee has given an impetus to fulfill
that objective, added 75 % of the real estate developers.
The Indian developers
are optimistic & expecting to get a good number of booking this year. Their
confidence is based on the fact that the rupee is plunging and has fallen 35%
in last one year, adds the survey.
The enquiries from
NRIs especially from the Middle-East, Europe, the US & Singapore for buying
property in India have also risen by 20% to 25% following the rupee's
depreciation.
The record decline in
the value of the Indian rupee and the sluggish realty market, proved to be a
double delight for overseas Indians investing in property here, adds the
Secretary General.
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