Are non-res­i­dent In­di­ans in­vest­ing money in In­dian Real Es­tate? Are they buy­ing for in­vest­ment pur­poses or be­cause of an emo­tional con­nect with their coun­try? the Realty+ show episode 9 on Repub­lic TV brings fo­cus to some in­ter­est­ing in­sights into NRI inv

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Talk­ing about the most con­tro­ver­sial sub­ject ‘Are NRIS in­vest­ing money in In­dian Real Es­tate?’ amit b wad­hwani at the be­gin­ning of the show com­ment

that In­dian de­vel­op­ers travel abroad to at­tract home buy­ers. dr. annurag Batra clar­i­fied that most of the NRIS are pur­chas­ing prop­er­ties for their plans for set­tle­ment in In­dia. Even NRIS are more prone to in­vest in In­dian Real Es­tate be­cause of their rel­a­tives set­tled in In­dia. He also added that NRIS do thor­ough re­search be­fore in­vest­ing in In­dian prop­erty and as they start liv­ing abroad they take more log­i­cal and make bet­ter de­ci­sions be­fore fi­nal­is­ing on a prop­erty. To wad­hwani’s query about why de­vel­op­ers ap­proach NRIS, Ad­vo­cate Vib­hav Kr­ishna, an ad­vo­cate strongly be­lieved that de­vel­op­ers take the short­cut to earn­ing money by trav­el­ling to Dubai, Sin­ga­pore and Hong Kong and con­vinc­ing buy­ers there.

In chin­tan sheth, di­rec­tor of ash­win sheth Group’s opin­ion, in to­day’s sce­nario, there is scope for the NRIS to make good money. deepesh sal­gia, di­rec­tor of shapoorji Pal­lonji Group said, “The is­sue that NRIS were not buy­ing

WHY NRIS BUY PROP­ERTY? Set­tle­ment In­vest­ment For fam­ily in the coun­try

homes ear­lier due to safety is­sue or lack of trans­parency. Those are now tack­led by RERA. But there’s an­other is­sue here, in the over­all in­ter­na­tional demo­cratic coun­tries, there’s a feel­ing of xeno­pho­bia – an anti-im­mi­grant trend which has de­vel­oped a sense of in­se­cu­rity in the minds of NRIS.”

am­bar Ma­hesh­wari, ceo of al­ter­nate in­vest­ment Funds, in­di­a­b­ulls de­clared, “Ear­lier in In­dian real es­tate, the prod­uct prices used to in­crease, but that era has come to a pause with res­i­den­tial prop­er­ties. How­ever, in the long-term, the sce­nario will turn out very well.”

Kr­ishna said, “In­dia to­day is the fastest grow­ing econ­omy and a lot of re­forms have come into play in terms of GST and the in­sol­vency law. Banks too are co­op­er­at­ing – these serve as pos­i­tive signs for an NRI.”

ashok agar­wal, di­rec­tor of lo­tus Group opined, “As sal­gia said ev­ery­one wants a place in In­dia due to their in­se­cu­rity, it’s true. The whole world econ­omy is mov­ing, the im­po­si­tion of Amer­ica on Chi­nese power is giv­ing a push to the In­dian econ­omy. Due to in­se­cu­rity, ev­ery In­dian who is abroad is look­ing for a setup in In­dia for their fu­ture.”

dr. Batra said, “To­day when an NRI in­vests in In­dia, they mostly pur­chase prop­er­ties for self-use and NRI in­vest­ment in In­dian Real es­tate is less than 4%.” dubai Vs. Mum­bai

agar­wal replied, “Not in Dubai, as there’s no real badge. There are 25 lac per­ma­nent res­i­dents, the rest are all im­mi­grants. Un­less there’s a real de­mand, it’s not re­li­able.” Agree­ing with agar­wal, sal­gia felt that In­dia is ap­par­ently a much bet­ter op­tion while sheth ex­pressed the be­lief that the In­dian mar­ket is more ma­ture and it has more per­for­mance-driven play­ers. For an NRI buyer, his ad­vice was tolook at In­dian real es­tate in the same man­ner as Dubai and Hong Kong. com­mer­cial Vs. Res­i­den­tial

In Ma­hesh­wari’s opin­ion, To­day the res­i­den­tial sec­tor might be per­form­ing slowly but the com­mer­cial sec­tor is do­ing fan­tas­ti­cally well and that’s where the NRIS are in­vest­ing money. More­over, there are a lot of al­ter­na­tive funds avail­able for NRIS.

Giv­ing his fi­nal thoughts, dr. Batra said that five years down the line, all banks would even­tu­ally be­come tech­nol­ogy-driven. Peo­ple hav­ing 5-10 mil­lion will be in­vest­ing in cor­po­rate real es­tate.

On a sat­is­fac­tory note, wad­hwani con­cluded the ses­sion say­ing that In­dian Real Es­tate is more poised in terms of ac­cept­ing the in­flow of money com­ing in from NRIS.








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