NRIs Buying Property Here

 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