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The 20 million Indians spread across the world, India, as a real estate investment destination, was far away. Even until the turn of the millennium, NRI investment in Indian real estate was a trickle.
Some promoters would appoint a part-time local representative in cities with large Indian populations. The more enterprising ones would occasionally participate in an exhibition where there would have more questions than answers.
You bought property there if you had to. And prayed that your money and property would be safe.
In the last couple of years there has been a sea change in NRI’s buying land and property in the Indian market.
What was a trickle is now a steady stream. No major housing project can afford to ignore the NRI market and many earmark exclusive NRI blocks in their building plans.
Indians abroad want to buy into their home country not only for parents and annual holidays but purely for investment.
They have recognised that while, in much of the world, real estate may be slowing, in India’s land value is growing by leaps and bounds.
The nature of investors / buyers of real estate and the motivation to buy land / property also varies from country to country.
NRI Indians look at India’s land not only for investment but also a security for their families and also a holiday retreat.
2nd and 3rd generation Indians invest in land / flat / an independent house first in the first metros like Delhi, Mumbai, Calcutta & Chennai. Then the other smaller towns for real estate investment.
Predominantly, however, NRIs look for a return on investment with more affluent individuals seeking to invest in commercial space where rental incomes are usually over 10% and offset the interest cost.
There have been many factors fuelling NRI demand. The India story now merits regular articles in mainline newspapers such as The Times, Wall Street Journal or New York Times, encouraging everyone to seek a piece of the action.
The easing of repatriation rules has made it simpler to encash returns on investment. Real estate developers have become more professional.
Banks are more willing to lend. In recent months the strengthening rupee and weakening US real estate market have made India even more attractive.
The most important reason perhaps is that the Indian real estate boom is seen as being led by genuine end-user demand and hence sustainable in the long run, making the investment safe.
The marketing of real estate is also getting more organised, facilitating the buying and selling of land or property process. While earlier, property developers would seek to do their own marketing, today they rely on online property selling.
NRIs too depend on the professional advice and transaction management to ensure a smooth & good investment online.
NRI’s are extremely techsavvy and they do a lot of research. Chennai flats is a virtual office but which makes Chennai based realty / land / property
Property information is manaed by Chennaiflats.com with an extensive database depending on need and availability of land / property.
Currently the NRI market accounts for about 20% of the Indian realty sector. Delays in construction and quality of service remain issues of concern with many developers mostly as NRI’s are concerned.
If India were to catch up with developed countries on matters of title, transparency, service and contract integrity, the floodgates would open up. There is a lot of money waiting at the wings.
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The post NRI – Buying the Smart desi appeared first on Star Properties India.