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The
resurgent dollar and job
insecurity abroad are behind a
renewed interest in investing in
the realty market here, says
Deepika Mital
Thanks to sharp exchange rate
movements that have affected the relative cost of living,
places like Chicago are among the world's most expensive cities
as
per a recent comparative report
compiled by the Economist
Intelligence Unit. On the same
grid, due to the strengthening
dollar, Mumbai has been listed
as the second cheapest city to
live in after Karachi.
Sanjay Dutt, CEO - Business, Jones Lang LaSalle Meghraj says,
"India is not the only country that NRIs are now eying
for realty investments. After the subprime crisis fallout
in the US, NRI investors have woken up to the potential there.
However, they are aware that the meltdown has created attractive
investment opportunities in India. It is generally known that
markets in developed countries do not have the growth potential
of those of emerging economies such as India. Moreover, NRIs
invest in India for more than just financial reasons - for
expatriates, there is sentimental value attached to owning
a home in India. Many NRIs plan to repatriate at some point
- and this will ensure India will see increased NRI activity
in the times to come".
Though the considerations for investing in India are more
than just economic the biggest reason today is the tremendous
job losses abroad, which has made people insecure about their
money. "The situation being better in India, they are
looking at parking their savings in properties that they could
liquidate at any time. Easy liquidity is an important issue.
So they are not looking for bank loans but simply putting
their savings in a property that is lucrative and has high
potential for appreciation. They are looking at properties
that have resalable value too, which means they can exit quickly
if there is a need. In most cases they are looking for ready
possession and in projects by reputed builders. As for the
locations they are looking at wellknown residential and commercial
locations and up coming locations that have tremendous future
growth potential. Many NRIs are looking for a property around
their home turf, points out Gulam Zia, Director of Research,
Knight Frank.
Sumit Chugh, a long-time resident of Maryland, USA, who is
contemplating buying property in India now, evidences the
resurgence of NRIs in the property market, especially with
the rupee weakening against the dollar. He says, "I have
been parking a lot of my saving in stocks due to which my
earnings are down by 60 percent since the recession. I think
the situation is not going to improve for the next two years.
Comparatively, in India things look better and more stable.
The property market looks good with some price correction
- and I think the returns will be better if I want to sell
after a few years. So this time when I come to India during
summer, I am going to finish with the deal. I have asked relatives
to scout out a good residential and commercial property for
us".
Source: TNN
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