49pc NRIs 'buy property for investment'
Dubai, November 28, 2011
About 49 percent of non-resident Indians (NRIs) are looking to buy property in India purely for investment purposes, a study conducted by Sumansa Exhibitions has revealed.
The study was conducted amongst 15,000 NRIs across the UAE and highlighted the fact that Mumbai and Delhi grab the top spots as the extremely viable options for property investments amongst NRIs since the cities continue to be the most robust real estate markets in India.
Pune, Gurgaon and Noida have emerged as hotspots for investments making it to the top 5 list of favourable cities. It further indicates that NRIs are not necessarily looking at their hometowns for investments, it said.
Sunil Jaiswal, CEO, Sumansa Exhibitions, organisers of Indian Property Show, said: “The survey result is not surprising as Mumbai and Delhi are the most promising markets as far as return of investment (ROI) and net profitability is concerned. Both these cities enjoy commercial prominence, location advantage and increasing wealth, as such the growth momentum either has continued or is stable even if the world markets have experienced economic crisis.”
“Factoring all the advantages these cities have, the scene will not change in near future. NRIs do still consider that investing in these cities will be profitable. Pune, Gurgaon and Noida are in the top 5 as they enjoy the advantage of being in close proximity of the main cities,” he said.
Honey Katiyal, CEO, Investors Clinic, India’s leading real estate consultancy, said: “NRIs are choosing other cities apart from their hometowns especially Mumbai, Delhi, Pune, Gurgaon and Noida, which reflects the sentiments that the investors are looking for good investment options for increasing their wealth.”
“These cities are favorable as investors can make good profit as the real estate prices in past few years have spiraled enormously and will witness upward trend in the future, barring 10 to 15 percent correction in some parts of these cities, plus the cities give good rental income. Home loans and other facilities from banks and builders can also be availed quickly; all this makes them good options for investment. We as one of the India’s largest real estate management consultancies have seen this trend and expect the same to continue in foreseeable future”.
Katiyal also emphasised that NRIs stand to gain from the sharp slide in rupee over the last 2 weeks. The rupee has depreciated more than 16 percent against the US dollar since July 2011.
This has made homes in India increasingly cheaper in dollar price terms, an attractive proportion specially at a time the real estate sector in the developed markets remain depressed. – TradeArabia News Service