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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