Tuesday 9 February 2016

Depreciating rupee and appreciating NRI Real Estate Market in India

As a matter of fact, when the rupee depreciates, the Indian Real Estate sector becomes more affordable as well as profitable for NRI investors. The Indian realty market has always been a lucrative option for investment.  Ideally the depreciation of rupee should have a positive impact as it gives a direct financial benefit to the NRI’s as their affordability increases because of dollar appreciation.
Indian Real Estate is one of the fastest growing sectors which give good return on your investment. For anyone who invests in dollars, the cost of buying that property comes down to nearly 20 – 25%. It has undoubtedly increased the purchasing power of the NRI’s and the kind of profits they earn and the capital appreciation that they see becomes comparatively very high. In addition to it, the developers are also taking keen interest in capturing this NRI interest. With announcing of a lot of schemes like discounts on down payment, attractive payment plans etc; a lot has already been happening to attract NRI investments to the Indian market. Conducting of property shows and events in some parts of the world where people of Indian origin are based further adds to the opportunities available for their investment. 
In our recommendation, it is always good for NRI’s to make use of such opportunities if they are looking for a long term return on their investments. If you go through the reports of some Real Estate players, the markets of both Tier 1 and Tier 2 cities are already witnessing an increased level of interest by NRI buyers. It has been seen that the luxury Real Estate has always been of major attraction to the NRI’s but the markets like Delhi, Gurgaon, Mumbai, Nagpur, Ahmedabad, Pune, Punjab, Calcutta, Lucknow, Hyderabad, Chennai, Coimbatore, Trivandrum, Cochin, Trichur, Calicut, Bangalore, Mysore etc are seeing rising NRI interest in both residential as well as commercial Real Estate. We should be hopeful of seeing some good transactions taking in the coming months. Keeping in mind all the factors, anyone who wants to avail this opportunity will have to make quick decisions as the property market of India and the rupee keeps fluctuating. So if the NRI’s want to invest back in their homeland, this is the time to make that lifetime investment.  Moreover the investment procedure in real estate has been greatly simplified for the NRIs making it all the more attractive to them. Adding to the list of advantages, the NRIs can also avail great tax benefits by investing in real estate in India as most of the countries have a double-taxation avoidance agreement with India.
So though this decline in the value of the rupee is being successful in fetching the NRI interest in the Indian market, but it is also time for the developers to do much more than just increasing the inventory in the market. The market is full of negative sentiments due to the delays in the delivery of the projects faced by most of the customers. The NRI’s are taking maximum advantage of the current scenario and are expecting maximum benefits from the same. To keep up to their expectations and also to boost the future investments, the realtors need to focus more on the delivery part of the project. The untimely delivery may act as a hurdle for the current as well as future investments. The attractive propositions available in the market along with the stable property prices make a perfect blend for NRI investors to invest at such times. My suggestion is to make optimum usage of such opportunities to bring back funds to the sector. It will also have a direct impact on the domestic enquiries and will give the much needed psychological relief to the market sentiments.

At this point of time, buying of the properties from an investment point of view becomes one good option for the ones who look for long term returns. To all the NRI’s, it comes as one of the most preferred investment as it also comes as an additional income to them in addition to being a safe long term investment. Indian realty market has a variety of options that suit their preferences and their budget as well. However the current market sentiments are pretty low, so they might act as a hurdle in making the final purchasing decision.  It is the time when the realty players need to take the right actions to make it a profitable proposition to both the parties.  

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