Real estate developers are feeling the pinch due to sluggish demand and the stagnant market. However, the devaluation of Indian rupee against US dollar and British Pound have proved to be blessing in disguise for them as it has lured on-resident Indian (NRI) investors to pump in money in the property market.
The current economic scenario coupled with realty market situation has given an edge to the NRI customers. Although, NRIs are not flooding the market with money, they are mulling investments and have started inquiries for buying properties.
The developers believe that NRIs have much more faith in Indian economy which does not run on paper money like American and European countries. “Due to global economic situation, businesses of NRIs have been affected by 10-15%. However, they still have their savings which they will prefer to invest in India rather than the country they are living in,” said Dipak Patel, managing director of Siddhi Developers.
Besides, it seems to be a better time for NRIs to invest in the property market. Compared to June 2011, dollar and GBP have appreciated by 24% and 19% respectively against Indian rupee giving an upper hand to the NRI customers. “Moreover, they can also bargain with the developers for discount in a stagnant market. As a result, they can get property at around 30% cheaper rate, which can be considered as a good deal in any market,” said Rajesh Vaswani, executive director of Venus Group of Companies.
Talking in the same breath, vice president of Gujarat Institute of Housing and Estate Developers (Gihed) Yogesh Bhavsar said that developers are receiving enquiries from UK, US and Dubai. He said that even if they are not going to get any appreciation in value of their properties, they are not going to loose out anything.
Generally, NRIs do not book properties individually but come in as a group, so they are in a better position to bargain compared to an individual local buyer. Bhavsar also said that developer across the country, particularly in Gujarat, are getting NRI investment due to development of the state.
Dollar takes aim
The current economic scenario coupled with realty market situation has given an edge to NRI customers.
Although, NRIs are not flooding the market with money, they are mulling investments and have started inquiries for buying property.
Compared to June 2011, dollar and British poundhave appreciated by 24% and 19% respectively against Indian rupee giving an upper hand to NRI customers.
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