By Mr.
Kishor Pate, CMD - Amit Enterprises Housing Ltd.
There has been a
decisive resurgence of interest by NRIs (Non-Residents Indians) in Pune
property investments. The scale of rise has not spectacular.But, it does
indicate that NRI investor confidence is returning.
NRI property
investors tend to stay away from unfamiliar, historically over speculative
cities & focus on either on their cities of origin or on those that offer
assured and stable returns on investment. The fact that Pune, with over 210
software companies, has overtaken even Bangalore and 208 in terms of IT-driven
demand for residential properties has stood in the city's favour.
Naturally, NRIs
prefer to invest in residential in Pune city
that can earn them handsome rental returns & will also appreciate
for eventual resale. They are showing a lot of demand for luxury houses as well
as higher mid - income residences in the price range of Rs. 65 lakh to Rs. 3.5
crore and above.
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| Mr. Kishor Pate |
There is considerable
interest in under-construction residential projects nearing completion, since
these are available at lower rates. NRI property investors who are focused on
rental income are on the look-out for projects in areas with sustainable demand
from potential tenants.
In commercial
properties, NRI investors looking at the Pune real estate market look for
projects by reputed developers / promoters which are fully or almost fully leased
out. Their investment appetite in this segment ranges between Rs. 5 to Rs. 30
crore.
Despite Pune's
burgeoning retail sector, NRIs are largely staying away from investments in
retail projects as there far too much supply on the market. This makes investing
in retail properties unattractive to them.
Challenges
NRI Investors Face..!
Apart from a generic
understanding, NRIs tend to be out of touch with Pune city's real estate
market. Therefore, they are not attuned to what locations & typologies work
best for residential property investment. There is a lot of investigation
required on the ground before a residential property investment becomes viable
- especially in large-ticket assets.
Also, the previous
route of buying a property by 'remote control' via a power of attorney has now
been closed.
The NRI
Modus Operandi..!
NRIs who are
currently abroad therefore ask their relatives or close associates in Pune to
co-ordinate with reputed developers and also brokerages.
Most NRI's focused on
Pune property will visit the city during the festive season to finalize the
property and conclude the transactions.
However, it should
not be assumed that NRI property buyers are entirely clueless. In fact, they
are extremely discerning. The fact that they have been exposed to the
transparency of real estate markets in developed nations understandably raises
their expectations in term of value for money, construction quality, facilities
& amenities offered, and overall transparency.
Contrary to commonly
held belief, most NRI property investors looking at Pune city are aware that
expecting substantial short-term gains on their investments is unrealistic.
They are not 'quick buck' hunters, but rather serious portfolio players.
For Media Contact...!
Jay Kalghatgi
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