US NRIs interest in Indian realty revives
A stable government at the centre, pragmatic policies and impending reforms has all convinced US NRIs to look at Indian realty. The budget’s fiscal sops, SEBI’s final guidelines for infrastructure investment trusts and Real Estate Investment Trusts (REITs) and a boost for affordable housing are just instances which have convinced NRIs that there are better days for the realty sector across the country.
Unlike earlier there is a spurt in the number of NRIs evincing keen interest in Indian realty. In a recent 3-day Times Realty show held in Edison and organised by Mindscape Exhibitions Pvt Ltd, 400 families visited the show.
Around 30 property developers from India have displayed a wide range of investment options for US NRIs and the categories of properties ranged from apartments to luxury homes and villas besides plotted development projects. The cities that participated include Delhi NCR, Mumbai, Bangalore, Chennai, Kolkata, Hyderabad, Pune, Kerala, Gujarat, Punjab, Gurgaon, Jaipur, Goa and Rajasthan.
A significant development is that 22 per cent of the visitors preferred Ahmedabad, Vadodara and Surat for realty investment in Gujarat. There has been a perceptible shift in demand for cities in Gujarat over the past three years. Ahmedabad topped the list of demand predominantly for apartments.
While Mumbai topped the list of cities in demand among US NRIs on the east coast in Edison for realty investment at 25 per cent, it was followed by Gujarat at 22 per cent, Bangalore and NCR at 15 per cent, Pune at 13 per cent followed by Hyderabad and Chennai.
There is an all-round optimism with the newly-elected government and the assurances given by the Prime Minister to resolve vexatious issues facing the country, according to the members of the Federation of Indian Associations during the Indian Independence Day parade held in Fremont, CA. The availability of professionally managed property management companies for retail investors has enthused NRI investors to look at realty investment.
A few Indian developers have opened representative offices in US and the number of solo shows is growing year after year exclusively to showcase a company’s projects among US NRI investors. Event managers are planning to penetrate into cities that were hitherto untapped as the demand potential is widely spread in US.
Generally the pattern of investment among US NRIs appears to be to begin their maiden investment with their home town. Subsequent level of investment is not city centric but focused on growth pattern and prevailing investment potential where yield on investment takes priority over other factors. Assured rental income and uninterrupted property management services lure NRIs irrespective of the location of investment in India
Source: Times of India / Magicbricks Bureau