- Indian developers anticipate 35% rise in inquiries from NRIs
- Good time for property investment
Dec 6, 2014, Dubai, UAE....Housing industry in India has emerged as the most vibrant and dynamic sector for the country’s economy as well as real-estate industry. India is growing at 5.5% annually and this growth rate is expected to reach 8% in next 3 years. In addition, there is a shortage of over 20 million homes in India which will create robust demand for housing over next 10 to 15 years. India is bound to outperform many markets around the world in terms of ROI.
According to a recent Assocham survey, Indian property developers are anticipating a 35% rise in inquiries from NRI based buyers against last year's about 18%. NRIs feel confident about the new government in India and are waiting for an investment friendly market in various fields as per the study. Tapping into an opportunity of rising interest among NRIs to invest in Indian real estate, some developers have also set up exclusive sales offices worldwide and in UAE.
“Real estate sector has always been at the top of investment opportunity watch-list of Non-Resident Indians. A place in the homeland also gives a sentimental support and sense of security, which is another reason for their investment in real estate. NRIs invested over $2 billion in Indian real estate in 2013. They spent at least 35 per cent more in real estate across the country in 2013 compared with the previous year and made for almost 12 percent of total apartment sales in the top seven cities. This $2 billion investment does not include Punjab, Gujarat and Kerala states where a bulk of repatriation happens. According to the World Bank, India led remittance flows globally, receiving $70 billion in 2013, which eventually leads to investments in Real Estate”, said Nishant Singhal, Director, Strategy & International Sales at Investors Clinic
“Realty Sector is in a stable stage currently and prices have started rising in key markets like NCR, Bangalore, Chennai and Mumbai. Sales volumes have also picked by around 10% to 15% across all markets. Real Estate developers are targeting NRI markets in a big way. Most of the developers have set up their dedicated sales team for NRI clients. Developers will be offering attractive payment plans and freebies during the Indian Property Show whereas buyers can expect discounts ranging from 3% to 5% during the exhibition”, further commented Nishant.
“We believe that a stable government should definitely revitalize the economy, which should also consequently have positive impacts on the Real Estate market. A report predicts that the global stock of invest-able real estate will rise by more than 55% by 2020, and will expand again by a similar proportion by 2030. Expected tax reforms and policy improvements should definitely benefit both buyers and real estate developers. People who had put their investment on hold are hitting the real estate markets now, pulling up the overall sentiments among investors. This period, being start to another expected bull run in the sector, is definitely an appropriate time to invest”, advises Nishant.
Evidently, property investment has given maximum return in the last 3-4 years. Huge gap between demand and supply of organized real estate developments has been one of the major reasons for the same. Under-construction projects have yielded high returns. For many NRIs, property is and should be the primary choice of investment.