Indian developers sweeten property deals for NRIs in UAE
Weaker Rupee (Rs18.11 for Dh1) is already off-setting part of house cost
By Emirate 24/7 News
Published Tuesday, December 01, 2015
The real estate outlook for India is ‘extremely bright’ with the sector set to witness growth driven by new government initiatives, according to JLL, a global real estate consultancy.
“The outlook is extremely bright owing to several factors that are now playing out. Firstly, the economy is on an upswing, and this will result in better demand. Secondly, due to the Smart Cities, ‘Housing for all by 2022’ and Amrut initiatives being activated by the government, the real estate sector is going to see a lot of action,” said Ashwinder Raj Singh, CEO – Residential Services, JLL India.
“Thirdly, the recent announcement by the government easing the foreign direct investment norms in construction sector will give a boost to the construction sector. The rules regarding minimum built-up area and the capital requirement will go a long way in helping to alleviate the sector’s liquidity issues, and will give a lot of stimulus for growth.”
Though there are various forms of investment such as gold, fixed deposits, the equity market and bonds available, Singh stated real estate is the safest bet in the long run – and the most reliable investment instrument,.
“Most of the properties built a few decades ago have easily yielded a return of 200-300 per cent. No other investment tool can give comparable results,” he added.
The three-day Indian Property Show, which opened at Dubai World Trade Centre on Tuesday by Bollywood actor Arbaaz Khan, features over 170 developers from all over India, showcasing more 600 projects and about 45,000 properties.
Amit Kumar, a non-resident Indian (NRI), hailing from Punjab, is hunting for a two-bedroom apartment in NCR.
“There are good offers from developers, but I still find the prices quite high and I am not sure whether I will be buying now,” he stated.
Sahili Pandit, an administrative secretary with a local firm, states that the cost of property is high in Mumbai and hence is looking for a house in Pune.
“Pune is cheaper than Mumbai, but prices are going up. I have come prepared to at least book an apartment here at the exhibition that offers me flexible payment option,” she revealed.
Sunil Jaiswal, President – Sumansa Exhibitions, organizers of Indian Property Show, said: ““With rupee depreciation by 20 per cent around US dollar – which translated into bigger remittance – this is a very good time specifically for NRIs to invest in Indian property.”
He added: “The other driving force is that real-estate is one of the fastest-growing sectors in India with positive prospects and with higher returns on property. Already, projects like 100 smart cities planned across India have captured NRIs’ eye and with the government easing foreign direct investment flow in such projects, the investment is expected to boost further.”
One UAE dirham was fetching Rs18.11 Indian rupees on Tuesday afternoon.