Depreciating Rupee attracts NRIs to Indian realty


NRI’s are taking maximum advantage of the current scenario as the cost of buying property in India has come down by 20-25 per cent.

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 gives good return on your investment. For anyone who invests in dollars, the cost of buying that property comes down to nearly 20 – 25 per cent. 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, developers are also taking keen interest in capturing this NRI interest. With the announcement 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 (PIO) are based, further adds to the opportunities available for their investment.

In my 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 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 markets like Delhi, Gurgaon, Mumbai, Nagpur, Ahmedabad, Pune, Punjab, Kolkata, Lucknow, Hyderabad, Chennai, Coimbatore, Trivandrum, Cochin, Trichur, Calicut, Bangalore, Mysore, among others, are seeing rising NRI interest in both residential as well as commercial real estate.

We should be hopeful of seeing some good transactions taking place 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 as most of the countries have a double-taxation avoidance agreement with India.

So though this decline in the value of the rupee is helping arouse the NRI interest in the Indian market, 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.

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 future investments, 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 properties from an investment point of view becomes one good option for the ones who look for long-term returns. To all NRI’s, it comes as the most preferred investment as it is an additional income to them apart from being a safe long-term investment.

The Indian realty market has a variety of options that suit their preferences and their budget as well. However, current market sentiments are pretty low, so they might act as a hurdle in making the final purchasing decision. It is a 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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