As rupee goes weak, developers woo NRI buyers with discounts

ACCORDING TO LIASES FORAS, NRIS ACCOUNT FOR 812% OF REALTY SALES IN MMR

MUMBAI: Following the declining rate of rupee, builders are now opting to woo non-resident Indians (NRIS) to invest in the real estate sector in the Mumbai Metropolitan Region (MMR). Their pitch — NRIS would get the best deal considering the fall in the rupee, coupled with offers.

Recently, the National Real Estate Development Council (NAREDCO) president Niranjan Hiranandani visited Dubai to promote properties to NRIS of the Gulf region. According to Hiranandani, it is the best time to invest in the realty market. “The rupee has fallen by at least 14% and in addition, builders are also giving good offers. If an NRI buyer purchases a ready-tomove property, he saves an additional 12% GST [Goods and Service Tax],” said Hiranandani.

Farshid Cooper, managing director, Spenta Corporation, is of a similar opinion and believes that investing right now could mean bigger houses for NRIS. “The buyers are likely to get more square-feet space for the same dollar value today as opposed to a few months ago, and this also widens the choices of the inventory available for NRIS,” he said.

According to Liases Foras, NRIS account for 8-12% of realty sales in MMR. “Since the rupee is depreciating, we feel sales will increase to 12-15%. There are increased inquiries which indicate that NRIS want to take advantage of this depreciation,” said Pankaj Kapoor, CEO, Liases Foras.

Builders are using the sales pitch that Maharashtra Real Estate Regulatory Authority (MAHARERA) will ensure that buyers’ investments are safe and they will get possession on time.

For years, the NRI market has been an important component of the realty sector. However, over the past few years, NRIS shied away from buying due to exorbitant pricing, lack of transparency, and delayed possession.