Non-resident Indians are snatching up property in their home country at rates 25-30 per cent higher than just two months ago, property developers are saying, as the rupee has fallen about 20 per cent against the US dollar since August.
NRIs are typically paid in foreign currency, lending them increased buying power as the rupee depreciates.
“Owing to the uncertain econominc environment, Indians living in the West do not want to put their savings in banks. They are investing in the Indian real estate market at a time when the rupee is ruling at record lows,” Sunil Dahiya, managing director of Vigneshwara Developers and senior vice-president of real estate association National Real Estate Development Council (Naredco) told the Business Standard.
Vigneshwara is reporting a 25 per cent increase in sales to NRIs over the last two to three months. “Most buyers who were planning to buy two-bedroom apartments earlier are now switching to three-or four-bedroom apartments,” Dahiya said.
Another developer, BCC Infrastructure, has sold a quarter of its 800 units to NRIs in the past three months. “Yes, we can say this is partly attributable to the falling rupee,” BCC Infrastructure Managing Director Kumar Bharat told the Standard. He also said that NRIs are showing interest in non-residential property such as industrial plots, against the threat of a global economic meltdown.
Anshuman Magazine, chairman and managing director, CB Richard Ellis (South Asia), told Business Standard the trend was positive as India had the highest appreciation in real estate. “However, real estate decisions take time to transact, unlike stocks, so it is difficult to give an industry figure,” he said.
Sanjay Sharma, managing director, Qubrex, a real estate consultancy, argued that this time of the year usually saw NRIs buying property, and the most recent sales could not definitively be tied to the falling rupee.
by Property Report Asia
NRIs are typically paid in foreign currency, lending them increased buying power as the rupee depreciates.
“Owing to the uncertain econominc environment, Indians living in the West do not want to put their savings in banks. They are investing in the Indian real estate market at a time when the rupee is ruling at record lows,” Sunil Dahiya, managing director of Vigneshwara Developers and senior vice-president of real estate association National Real Estate Development Council (Naredco) told the Business Standard.
Vigneshwara is reporting a 25 per cent increase in sales to NRIs over the last two to three months. “Most buyers who were planning to buy two-bedroom apartments earlier are now switching to three-or four-bedroom apartments,” Dahiya said.
Another developer, BCC Infrastructure, has sold a quarter of its 800 units to NRIs in the past three months. “Yes, we can say this is partly attributable to the falling rupee,” BCC Infrastructure Managing Director Kumar Bharat told the Standard. He also said that NRIs are showing interest in non-residential property such as industrial plots, against the threat of a global economic meltdown.
Anshuman Magazine, chairman and managing director, CB Richard Ellis (South Asia), told Business Standard the trend was positive as India had the highest appreciation in real estate. “However, real estate decisions take time to transact, unlike stocks, so it is difficult to give an industry figure,” he said.
Sanjay Sharma, managing director, Qubrex, a real estate consultancy, argued that this time of the year usually saw NRIs buying property, and the most recent sales could not definitively be tied to the falling rupee.
by Property Report Asia
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