The rupee is now at 72.5 to a dollar, from 63 in January. This apart, clarity in regulations after implementation of the Real Estate
(Regulation and Development) Act and a stable pricing environment in the segment have attracted NRIs.
A survey by realty consultants ANAROCK shows 78 per cent of NRI respondents indicated they prefer owning a property in this country, over other asset classes like stocks, fixed deposits or mutual funds. Experts also point to the uncertainty in visa and residency rules under the Trump administration as another reason for higher interest among NRIs living in the US for buying property back home.
“Due to the uncertainty of residency regulations in the US, many NRIs have had to scrap their long-term plans (there). This is acting as an additional incentive for them to buy property in India,” said Anuj Puri, chairman at ANAROCK.
On the demand side, realtors say the housing segment is seeing more demand from NRIs than office space. The bigger ticket size in commercial real estate
is making it difficult for many non-residents to invest in the latter.
This trend had already been reflected in some realtor sales numbers. For instance, Bengaluru-headquartered Century Real Estate, which predominantly works in the housing space, saw 15-20 per cent of its inventory sold to non-residents since January.
“Until last year, NRIs were mostly interested in investing in Delhi and the National Capital Region. Pune and Bengaluru have (since) emerged as preferred destinations for investment,” said Ravindra Pai, managing director at Century.
Experts say the NRI demand would help offset the liquidity problem, which is presently affecting realty sales.
Apart from falling rupee, stable property prices and RERA implementation are driving NRIs’ interest
Uncertainty in residency regulations in the US has prompted several non-residents to make investments in properties here
Around 15-20 per cent of real estate sales are likely to come from NRIs this financial year
Residential properties have seen higher interest from NRIs than commercial real estate so far this fiscal year