NRIs eying investment in Real Estate sector as Rupee slashes
The national economy has been giving panic cries since last two months, as Rupee went depreciating, but Indian Real Estate Sector seems to celebrate. As Rupee depreciates before USD, NRIs find it a good time to invest in Indian Real Estate sector. It’s a win-win situation for both NRI investors and the builders.
Rupee has depreciated l6% against the US dollar since the end of July, this has made homes in In¬dia 20 % cheaper for NRIs than before in dollar price terms. Builders offer a 10-15 % addi¬tional discount on full down payment. So in totality NRIs get a good catch with a discount of 30-35 %. This means an NRI can purchase a property that costs Rs2 crore in Mumbai, Delhi or any other city for Rs1.4-1.6 crore. Market has been gaining momentum with NRIs parking their funds in Indian Realty sector since two months. The trend is much prominent in Indian Metros.
This has definitely mobilized the sluggish real estate sector leaving the builders and developers to rejoice. "I was a little skeptical myself, but to my surprise, our mailbox was flooded with inquires. We soon realized that most of those writing to us were non¬resident Indians... and soon they were buying our apartments," says Navin Raheja, a Gurgaon-based builder, who launched the city's tallest tower last month with apartments priced between Rs1 crore and Rs3 crore. He has sold nearly half his flats in the new project to NRIs in two months.
Mr. Vikas Oberoi, managing director of Oberoi Realty says "We have seen a 250 % jump in the number of Indians living abroad buying homes in the last few months". The number of NRI property transactions in India dropped between 2009 and 2010 because of the improved market conditions in the West. Now the slash of Rupee has become a blessing in disguise for Indian Real Estate market.