With a continuous fall in Rupee, one sector that gained a lot is the Indian real estate market. According to many experts, the unstable rupee is making real estate more lucrative for non-resident Indians (NRIs). Apart from this introduction of various reforms like RERA and GST are also bringing in transparency and accountability, which too fueling up the NRI real estate market.
Expert says that, since the beginning of 2018, rupee has dropped 13.04% against the dollar, 6.20% over the past three months and 3.4% in one month, on the other hand, recent reforms such as implementation of the RERA, amendments in the Benami Properties Act has further attracted NRI community to the Indian realty sector.
Anshuman Magazine, CBRE Chairman, India, Southeast Asia, Middle East, and Africa said, “The drop in rupee can be seen as an investment opportunity for individual buyers as well as institutional investors. Over the past few months, we have witnessed a lot of interest from NRIs. This trend continues to grow stronger due to the timely reforms introduced that brought transparency and accountability in the sector.”
“These days’ builders are also leaving no stone unturned in luring them with a host of amenities and features. That’s led to resurgence in serious inquiries by NRI end-users and investors, leading to deals taking place.” Anuj Puri, chairman Anarock Property Consultants added.
With the Indian real estate industry estimated at about Rs 3 trillion annually, about 7-8 percent of the residential projects are being bought and held by NRIs each year which means a purchase of about Rs 21,000-30,000 crore annually. Due to a weaker rupee, 10 percent depreciation allows NRIs to enter at a 10 percent discount compared to the domestic resident counterparts.
Also, experts project that with increasing inquiries in the last 2-3 months, the NRI property market will fuel up more to about 10-12 percent, which will further boost residential project sales.