NRI Investment in Realty Sector

 

Real Estate is gaining ground in Indian Realty sector. The sector is expecting 35 per cent rise as per the current survey. The survey was conducted among nearly 850 real estate developers in Delhi – NCR, Chandigarh, Mumbai, Kolkata, Bangalore, Ahmedabad, Pune, Dehradun and Chennai, due to the revival of global economy. However Mumbai has emerged as the top Indian city for property investment by Non Resident Indians. Second to Mumbai it is Bangalore which is preferred destination for NRI’s. Mumbai is most preferred destination for NRI’s and is pegged at 31.86 per cent for property investment.

 

 

Bangalore is the second preferred destination by NRIs and it attracts 24.35 per cent in property investment. Chennai and Pune hold third place while Delhi has the fourth position followed by Kochin, Navi Mumbai, Gurgaon and Hyderabad. Residential apartments are all time favorable with 77.17 per cent compared with villas or commercial property. This year has seen a surge for the high end property and commercial premises. Ahmedabad is fast emerging with property investment at 32 per cent and to be the most stable market for both residential and commercial premises. In Delhi, there has been a 21 per cent rise in enquiries for the residential segment. The substantial rise in the property market by the NRI’s, is in housing finance companies and banks. Two top banks in India namely Canara Bank and ICICI Bank has launched special housing finance schemes for NRI’s. Luxury housing is being preferred most by the high end NRI investors and they are prefering to go to the metro cities. NRI’s from U.K, USA, Hong Kong, Singapore, Dubai are showing keen interest to invest in Indian properties, mostly in big cities. Kochi is the favorite destination for property investment by Keralties. Reserve Bank of India is also in the process of relaxing foreign exchange management Act (FEMA), to smoothen the process of buying property in India jointly with their spouse holding foreign passport. With the increasing number of NRI’s intending to purchase properties In India, it is for the Indian government to streamline and relax rules to facilitate NRI’s investment in Indian property market.

 


Source: Accommodation Times dated Oct 2, 2014