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NRIs in a buying mood, property experts say

Non-Resident Indians (NRIs) in the UAE are increasingly looking to buy property back home, with many opting to buy apartments for investment purposes, property experts revealed.
Speaking to Khaleej Times at the conclusion of the second edition of the Great Indian Property Investment Expo, Pankaj Narang, director of India Realty Expo (IRE), said that NRIs are looking for investment opportunities and that India currently offers the best case scenario for investments.
"India has an incredible 65 per cent of the population which is under 35 years of age," he said. "With oceans of opportunities in India, the income capacity has increased, hence the youth is also buying lots of real estate for end-use purpose. NRIs can benefit in such an environment when there are huge volume of transactions in Indian real estate as there is demand for housing, making it easier for them to enter and exit with greater return."
Prashant Trivedi, director of IRE, added that NRIs are currently investing in apartments purely for returns because of the increase in working class.
"Homes/villas are mostly bought for personal use, and this segment has also seen a growth in the last two years," he said. "With the growth in IT/ITES, manufacturing, BFSI, telecom, and construction, major cities like Mumbai, Thane, Navi Mumbai, Bangalore, Pune, Ahmedabad, and Delhi NCR are seeing lots of demand. Lets take an example, Paradise Group has their projects in the vicinity of the upcoming Navi Mumbai International Airport; the area will be a major economic activity and will see a huge demand and this would be the right time to invest in such projects."
Speaking about the future of the industry, Narang said that Indian real estate is the second largest employer, after agriculture and is slated to grow at a rate of 30 per cent over the next decade. India's rank in the Global House Price Index has jumped 13 spots, he said, to reach the ninth position among 55 international markets, on the back of increasing prices in mainstream residential sector. The real estate market is expected to touch $180 billion by 2020. The housing sector alone contributes 5-6 per cent to the country's Gross Domestic Product (GDP).
"India is now truly the land of opportunities," Narang said. "Prudence measures by the current government has kick started an exponential phase of the Indian economy, with the introduction of GST - One Nation One Tax and RERA has brought lot of clarity in Indian economy and especially Indian Real Estate. NRIs can now access all the developers and project details on state RERA websites making Indian real estate a transparent industry."
NRIs today know where they are investing and what is the credibility of the developer; this has helped to boost confidence in the sector, Trivedi said. "There are some amazing infrastructure projects undertaken by the Indian Government and State Governments such as airports, highways, and bullet trains. Rising demand from MNCs are also driving the force of Indian Real Estate. Few of the biggest funds in the world like Blackstone, and Canada Pension funds are investing millions of dollars in Indian real estate."
- rohma@khaleejtimes.com