Falling value of rupee and drop in property values in a tepid market has increased NRI interest in real estate investments. Will NRIs be able to fire the realty market of Punjab? Looking for a property deal was an important agenda for Amarjeet Virdi, 47, a Sydney-based NRI, who was in Delhi recently to attend Pravasi Bhartiya Divas (PBD) conference. Keen on investing in his home state Punjab, Virdi met a number of people at the stalls of real-estate firms and banks outside the PBD venue. And this was not an isolated case as a large number of NRIs from the land of five rivers attending the PBD utilised this opportunity to book their flat/plot or villa in Punjab, Haryana or NCR. Like Virdi, Ashok Bhalla, a Hong-Kong based NRI, was also looking for a spacious apartment to have a ready place to move into after returning to India two-three years down the line. Thus, if the buzz in the PBD is in any indication, NRIs from Punjab are looking at investing in realty in Punjab or in NCR. “NRIs are seriously considering buying flats for investment purposes at present. Their confidence level is also high as many have already earned huge returns on their earlier investments in property,” says Nikhil Jain, CEO of Ramprastha Developers. After the recent depreciation in value of rupee vis a vis the dollar, NRIs from around the globe have shown interest in real estate investment in India, said a Gurgaon-based real estate developer who had put up a stall at the PBD. “On an average we have been receiving over 20 queries per week from NRIs looking for property in the northern region”, he added. “We have received many queries from NRI customers from UAE, Singapore, UK and the US and the demand from the NRI segment has increased by 25 to 30 per cent in the past few months,” says Gaurav Mittal, Managing Director of CHD Developers. The fall of the rupee against the greenback in the past two years has resulted in the price of real estate falling by almost 25 per cent in notional terms, (assuming that the NRIs are paying in dollars). “If a residential unit was available for Rs 1 crore before the slide of the rupee, the same is now available for Rs 75 lakh to NRIs,” adds Mittal. Sale volumes have remained dismally low in Punjab over the past one year as there are hardly any investors in the market. “As most of the NRIs buy properties basically for investment purposes, their interest is going to pump in the required money into the sector”, says Surinder Bhatti, a Jalandhar-based consultant. He claims that the last quarter of 2013 has seen an increase in the number of NRI queries, especially in Jalandhar, Ludhiana and Mohali areas as most of the NRIs visit India during this time. “This ‘NRI season’ has breathed in some life into the ‘comatose’ market in Punjab”, says Mohali-based property dealer Sukhjinder Singh. “It goes without saying that NRIs are thinking of investing in realty because of strong dollar. I feel that it is high time that realty firms with swelling inventories should also attract cash-rich NRIs and PIOs so that they buy their flats,” says Alimuddin Rafi Ahmed, MD of ILD Developers. The increasing number of NRIs returning to India is another segment of buyers that is investing in real estate here, says Mahesh Sharma, managing director of NCR-based Veer Hanuman group. Sukhvinder Singh, an NRI based in Dubai, says, “I am going to invest in either Mohali or Zikarpur as it makes a lot of sense to invest in real estate now as appreciation of the investment is far higher here than in other parts of the country. I feel that NCR will also serve my cause.” According to one estimate, there are over two lakh NRIs from Jalandhar, Kapurthala, Nawanshahar, Ludhiana, Hoshiarpur and other parts of Punjab, and they have been important drivers of the property market in the state. Actually, lack of NRI investment in property market during the global recession had a severe negative impact on overall property business in Punjab. “Only end users prefer to buy property. Investors are missing from property business,” said a PNB official at the PBD. “NRIs prefer projects with low entry level price points when it comes to investments, and premium projects for personal use. I feel that the 20/80 scheme and 10/90 schemes offered to customers has been a major attraction for NRIs,” says Mahesh Sharma, managing director of Mahaveer Hanuman Group, who had also set-up stall at the PBD. Realty consultants say that most of the NRIs prefer to book apartments in projects that provide the latest amenities. “Even if they want to book a flat for investment purposes or for giving on rent their preference is for the projects which have quality flooring, latest and high quality of electrical and sanitary fittings along with gadgets that ensure proper security. NRIs can only buy residential and commercial properties and not agricultural land, plantation property and farmland. However, properties falling under these categories can be inherited. If any NRI has already held properties falling under these categories before becoming an NRI, he can continue holding them. NRIs can buy multiple residential and commercial properties in India. It goes without saying that the realty scene of Punjab will see better days if the mood at the PBD is any indication.
Posted on: Tue, 11 Mar 2014 06:08:29 +0000
Trending Topics
Recently Viewed Topics
© 2015