With a stable Government at the Centre, developers across the country are expecting a 35 per cent surge in real estate investment from NRIs as against 18 per cent last financial year.
“To tap the growing interest which comes at a time when the global economy is stabilising and India is showing strong signs of revival, real estate companies are pulling out all stops by conducting property shows, exhibitions and opening overseas representative offices. Developers are also expanding their existing distribution chains and entering into strategic partnerships to encourage investors from this cash-rich segment,” says a survey from industry chamber Assocham
“With the revival in global economy, especially in the United States and Europe, people are more optimistic and looking for property to invest both small and big developers are focusing on the NRI base in the US, the UK and Asia Pacific region this year,” said Assocham Secretary General DS Rawat The survey was conducted among nearly 850 real estate developers in Delhi-NCR, Chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahmedabad, Pune, Dehradun and Chennai etc.
Bangalore is the most favourite property investment destination for NRIs, followed by Ahmedabad, Pune, Chennai, Goa, Delhi and Dehradun, it added. The enquiries are primarily coming from NRIs residing in UAE, the US, Singapore, Australia, the UK, Canada and South Africa.
Explaining the reasons behind the expected surge in NRI investment, real estate consultancy firm Better Option Propmart Managing Director Amit Mavi said: “The findings of the survey by ASSOCHAM truly reflect the mood of the NRI market segment. The rightfully improved market sentiment of the Indian economy does prepare the room for the NRI communities.Thus, a surge in the enquiries and its ultimate translation into conversions is imminent, adding that commercial projects in upcoming locations of major metropolitan regions are also anticipated to generate keen interest from the NRIs as well.
Similarly Amit Gupta, Managing Director, Orris Infrastructure said: “It is true that after experiencing positive signaling in the economy, now real estate market is also registering good growth. Queries both within India and outside India have gone up and we are also managing to develop a situation to convert query into sales. We are expecting good investments after Pitra Paksh and beginning of Navratras. Sales will go up and touch the level of at least 30 per cent hike.”
As per the findings of the survey, Ahemdabad (32 per cent) continues to be the most stable market in terms of demand and absorption of both residential and commercial spaces. NRIs consider Ahmedabad as a safe place to invest in, with lenient Government regulations for property investments. Pune takes the 3rd place (30.5 per cent), whereas Chennai (28 per cent) assumes 4th position and Goa (23 per cent) is at 5th position.
In Delhi, there has been a 21 per cent rise in enquiries this year as opposed to last year from this segment and the majority of them have been for the residential segment. Catering to the growing demand among high-end segment, Delhi has also emerged among promising markets for real estate, the survey added