Indian expats in UAE consider realty investment back home amid weak rupee
New regulatory environment after reforms has revived the confidence of homebuyers.The depreciated rupee value against the UAE dirham is prompting a large number of NRIs here to consider investing in the Indian realty market.
The new regulatory environment in India after the implementation of reforms has also revived the confidence of NRI homebuyers.
As per Anarock data, the new launch supply across the top seven Indian cities in H1 2018 has increased by nearly 10 per cent as against the corresponding period in 2017. Housing sales have also witnessed a jump of more than five per cent in the first half of 2018 as against H1 2017.
“The new regulatory environment following the implementation of game-changing policies like Rera, demonetisation and GST has created a positive outlook for the Indian real estate sector, which was earlier marred by unscrupulous practices. In fact, most NRIs today perceive that the recent regulatory changes in India have made the sector more efficient and transparent, rendering the environment conducive enough for investment in property. Furthermore, the government’s initiative to boost the overall infrastructure development across the country has also prompted NRIs to turn their eyes on India. All these factors are leading to nearly 15 to 20 per cent surge in enquiries from NRIs annually,” says Anuj Puri, chairman, Anarock Property Consultants.
Developers are also leveraging this resurgence in buyer sentiment by launching projects at affordable price brackets. For instance, Omkar Realtors and Developers has invited expressions of interest from NRIs for its new mixed-use township in Andheri East, Mumbai, called Omkar International District. Construction has started and will be completed in phases from 2021 to 2022. Spread across 65 acres, the project has released 600 1 and 2-bedroom apartments in phase two priced from Rs9.3 million to Rs13 million. The payment plan is five per cent on booking, 80 per cent during construction and the remaining after.
Incessant project delays and often stalled projects over the last few years had become a major pet peeve for many NRIs who earlier largely invested in off-plan properties to earn maximum RoI.
“However, more recently, Rera implementation across several states and its stringent policies towards project completion has ushered in a new wave of excitement for NRIs to consider projects that are newly launched. More than 60 per cent of NRIs prefer to buy properties under various stages of construction instead of ready-to-move-in. This number had significantly dropped over the past few years owing to unfavourable conditions in Indian real estate,” elaborates Anarock’sPuri.
Indian real estate is seeing green shoots of revival in 2018. “While we may still be far away from the earlier peak levels, the positive impact of the reformatory changes, including Rera and GST, have begun to bear fruit, with the sector inching closer towards greater transparency, efficiency, accountability and financial discipline,” Puri concludes.