Weaker Rupee Sparks Interest In Gulf-Based Investors; Mumbai, Bengaluru Most Preferred
Indians constitute a major part of the population in the United Arab Emirates (UAE) and while they live and work there, an investment back home is on the cards for most. As of now, the weak-rupee scenario is a further win-win situation for many in the UAE. Khaleej Times has reported that a survey conducted by the organisers of the Indian Property Show revealed that 42.34 per cent of these survey participants had declined finance to buy property. A few months ago, the percentage of people who denied loans to finance their purchase stood at 33.66. Certainly, more rupees per UAE dirhams may turn out to be promising for Gulf-based NRI buyers and the Indian real estate sector in India.
The survey reached out to 15,000 NRIs and prospective buyers and the results clearly indicated that there has been a notable increase in the number of homebuyers who wish to invest back home, up from 34.98 per cent to 40.87 per cent. The participants who took the survey are either those who are first time buyers or are looking to expand their portfolio in the Indian market.
Where are they looking to buy? Mumbai, Bengaluru and Chennai are the top three choices for NRI buyers, reports Khaleej Times. But that’s not all. Cochin and Hyderabad has climbed up the preference ladder while Pune, Delhi, Coimbatore and Goa are also options that NRIs consider.
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The good news is here as well. A majority of these homebuyers are looking at an investment in India expecting good returns. This comes as an encouragement for the market in India. A number of factors have contributed to this.
The present government under the leadership of Prime Minister Modi has been viewed as NRI investor-friendly. Besides, the demonetisation move has been instrumental in instilling confidence in the NRI community. Even the implementation of the Real Estate Regulatory Act (RERA) has enhanced transparency in the system and further set the stage for successful NRI investment opportunity. Depreciating rupee in the recent times is also a key factor which has bolstered NRI investment.
By giving affordable housing an infrastructure status, the government has tried to further the cause of 'Housing For All'. It will ensure that approvals, land acquisition and funds for such housing would be taken up on priority. The move will help trigger a demand and sale cycle within the Indian market, lifting buyers' sentiments.
Technology boosts NRI investments
Technological tools such as google apps as well as virtual and augmented realities (VR/AR) play a crucial role in bridging the geographical gap and educating NRIs about the market dynamics in the country. Digital tools not only aid in property search but also facilitates in identifying, booking and purchasing properties.
Most property markets that have been on an NRI investor's radar have taken to augmented and virtual reality. This is helpful as it bridges the distance between a prospective buyer and the seller. It becomes easier to shortlist a property this way as a buyer needn't be present at the site for any kind of inspection. One can browse through the pool of stock available. This has made the process much simpler cutting down expenses on site visits or in the case of NRI's, trips to India that may or may not have culminated in an actual purchase. Besides, you save a lot of time and energy considering that a new house is just a click away.
Efforts by developer community and marketing agencies:
Indian real estate developers have a stronghold in UAE. Most of them regularly participate in global launch of Indian real estate projects in cities like Dubai, Abu Dhabi and Sharjah. Hence, developers in India who cater to NRI populace understand their tastes and preference for homes and amenities.
Growth of affordable housing
The 'Housing for All' initiative and infrastructure status to the affordable housing sector as announced in the Union Budget 2017 would be a lucrative opportunity for the investors in the Gulf. The government's new measure is likely to reduce cost for the developers, increase the housing supply and thus attract more NRI investments.
With inputs from Sneha Sharon Mammen