NRI INVESTMENT IN INDIAN REAL ESTATE BOON OR BANE
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
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.
AMIT B WADHWANI