New Delhi: With the rupee falling against the dollar and reports of deep job cuts in the US and Europe, there is a renewed interest among non-resident Indians to buy real estate assets in India, especially in the National Capital Region.
According to real estate consultant Anarok, the depreciation of the rupee was a factor of great importance to the NRIs who considered Indian real estate a reasonable investment option during these volatile times.
360 Realtors, the NCR-based real estate consultancy, has sold more than 112 units valued at 105 million rupees since the start of the lockdown a month ago, and a large number of buyers have been non-resident Indians.
Many ex-pats are trying to take advantage of the depreciation of the rupee. “The closing of the fiscal year also helped boost sales,” said Ankit Kansal, managing director of 360 Realtors.
Delhi-based developers have said that NRIs who lost their jobs or were in an unstable situation due to changes in US immigration laws are now actively seeking property in NCR.
NRIs see the current situation as a good investment opportunity. “With the stock market falling and property prices benign, they are looking for the right property at the right price from the right developer,” said Manoj Gore, chief executive of the Noida-based Gaurs Group.
Many builders feel that after the shutdown, sales will rise and latent demand will increase.
“Potential buyers, including NRIs, have the time to discuss and research properties online. This helps increase sales and we are looking for a solid portfolio in the future,” Kansal said.
Given the cash crunch facing developers, many experts believe this is the time to start conversations with the creator.
Due to the blockage, the builders are facing liquidity problems. Honey Katyal, the founder of Investors Clinic, said clients realize that construction companies are in trouble, so they are making the most of this crisis through tough deals.
Anarock’s consumer survey for the second half of 2019 indicated that 68% of NRI respondents consider real estate the best asset class to invest, and even better than stocks (16%).
“… the recent volatility in the stock market, coupled with the favorable exchange rate between the rupee and the dollar at the time of the Coronavirus crisis, presents a great opportunity for NRIs to consider investing in Indian real estate. A large portion of the NRIs who previously preferred Equity markets will now focus more on real estate, ”said Anarock director and head of research Prashant Thakur.
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