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Fri, Nov 22, 2024 | Jumada al-Awwal 20, 1446 | DXB
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NRIs seeking 'home' run in favourable real estate sector
Dubai - Amidst domestic demand, the expatriate Indian also gets the opportunity to be part of a vibrant and lucrative real estate market in India.
Reuters
Dr Niranjan Hiranandani.
The vibrant Indian property market will continue to offer best-bargian deals to domestic as well as non-resident Indians (NRIs) throughout 2021, with the sector currently not only adapting to new market trends but also throwing multiple buying options with favourable government policies.
“The economy is recovering at a faster rate than was envisaged; property buying is happening across micro markets and through different segments,” said Dr Niranjan Hiranandani, president of the National Real Estate Development Council and the Associated Chambers of Commerce and Industry of India.
The trend of larger luxury apartments is gaining traction to accommodate new normal routine of work, study and wellness from home, while rental accommodators look out to be first-time home buyers in order to garner the best time to buy a home, he added.
“Amidst domestic demand, the expatriate Indian also gets the opportunity to be part of a vibrant and lucrative real estate market in India. The property market in all states will do well through 2021, given that real estate regulatory laws have been implemented across India, ensuring safety and transparency in property transactions. The trend so far suggests that the Indian economy has rebooted after the series of lockdowns and now under mission revival we should see healthy growth numbers across 2021,” Dr Hiranandani said.
“India is poised to be the next global hub and fastest-growing economy with a mission of self-reliance. Core industries and sectors have geared up in lieu of innovative policy reforms cushioning their spring-back and Covid-led pandemic opened the flood gates for new sunshine sectors too. Indian real estate continues to remain a predominant driver for employment after agriculture and has a multiplier effect on 269 allied industries. Therefore, revival of Indian real estate is imperative for GDP growth.”
The recovery from the setbacks caused by Covid-19 has been rather stellar for Indian real estate: There has been a surge in investments, both from domestic and NRI buyers, causing all prominent micro-markets to register strong sales across budget segments in third quarter of fiscal year 2020-21.
Manju Yagnik.
Shajai Jacob, CEO for the GCC at Anarock Property Consultants, said: “While developers definitely introduced several schemes and benefits for property buyers, much of the credit for this revival actually goes to the government which came through with proactive regulatory changes. Real estate has a multiplier effect on the Indian economy with several allied industries reflecting the changes in this sector. Recognising this, the government announced several initiatives to encourage investment in the sector.”
The NRI segment has contributed immensely to the resurgence in demand for real estate across the country. NRIs, just like the domestic home buyer, is making the most of the reduction in stamp duty charges, especially in the Mumbai Metropolitan Region.
The NRI buyers, as a result of the lockdowns across the globe, believe now more than ever before that they need a spacious house back home. They are currently buying not just for themselves but also for their extended family based in India. As of now, homes that are ready-to-move-in, luxury residences with spacious decks and projects located at waterfronts are being widely preferred by almost all consumer segments
Jayesh Rathod, executive director, The Guardians Real Estate Advisory, said: “The year of 2020 has forced developers, across the country, to focus on completing their projects, as opposed to launching new ones. The next year would, therefore, see increased supply of ready-to-move homes in regions like Delhi-NCR and the MMR in Maharashtra. With the vaccine around the corner, we see the economy surpassing the pre-covid levels in financial year 2021.”
Top consumer favourites include Mumbai Metropolitan Region (MMR), Chennai, Pune, Banglore, Coimbatore, Ahmedabad and Indore a mix of tier 1 and tier 2 cities are seeing good infrastructure development and improved connectivity are expected to do well in terms of real estate investment giving good returns.
Manju Yagnik, vice-chairperson of Nahar Group, said: “NRIs invest in Indian real estate for good returns. However, considering pandemic-related uncertainty going back to the roots offered them the much-needed sense of security. Indian real estate which finds itself in the most opportune time proved to be a gold mine for NRIs returning back home. The historically low home loan interest rates at 6.9 per cent and stamp duty as low as two per cent along with reduced ready reckoner rates and weak rupee attracted good investment from NRIs. We have seen increased NRI investments in Mumbai, MMR, Tier 2 and Tier 3 cities where the NRIs have returned to be with their families.”
Indian real estate today is most lucrative for NRIs who can zero into a property that offers good repayments schemes and offers for an under-construction property. For ready to move in property NRIs need to have an eye for a branded development offering lifestyle essentials. NRIs investing in Mumbai and MMR region should opt for micro-markets like Thane, Vasai, Ulwe, Chandivali, Bhandup, Mulund, Nerul being the new investment hubs offering township living with attractive ROIs. Understanding the living quotients NRIs should invest in developments that match their lifestyle with an abundance of open spaces, offering wellness and health amenities along with unmatched connectivity and convenience, explains Yagnik .
“Buyers will be on lookout for ready to move in inventory due to WFH and non-availability of rental accommodation. Further increased demand for homes in Tier 1 and Tier2 cities, due to reverse migration offering living at a reasonably low cost. Investment in second home will see good traction which is back in vogue, located away from the city bustle and closer to nature and has proved to be the safest, understanding social distancing scenario. And lastly, the trend of registration of property online is seeing good traction and will continue in 2021,” added Yagnik.
— sandhya@khaleejtimes.com
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