As they say, one man’s loss is another man’s gain. As the rupee continues to dive deep down to touch new lows against the dollar, non-resident Indians (NRIs) have started taking a renewed interest in properties in Delhi NCR and Mumbai.
As per realty research firm Liases Foras, 8-10% of realty market is usually owned by NRIs. While they usually tend to invest in Delhi, Mumbai, and Pune, the recent downturn of the real estate market had given them extra leverage.
Now, the rupee’s downturn, which has given NRI buyers and investors as over-the-top 10-15% leverage, is acting as a cherry on the cake.
Several international property consultants have claimed that there has been a recent spurt in the overseas inquiries. In fact, most of the demand for customized properties are coming from Hong Kong, the US, and UK, Prateek Shroff, a Mumbai-based international property consultant told DNA.
Shroff further added that the NRI buyers are not just interested in a single unit, but are looking for bulk deals to make the most of the rupee dip. They are coming together as consortia and opting to buy properties in “bulk, in deals worth Rs 100-150 crore.” These buyers are interested to buy whole buildings instead of a single flat or a house.
Niranjan Hiranandani, managing director at Hiranandani Group, also echoed the same trend when he reportedly claimed that NRIs and foreign consortia are looking for opportunities to invest in the country, including commercial spaces.
It seems that the weakening Indian National Rupee and an appreciating dollar have come as a blessing in disguise to boost the slumping realty sector. While NRIs can buy a property for fewer dollars now that the rupee is down, even the developers are leaving no stone unturned to tap this opportunity and are even offering 15-20% discount to upfront buyers.
However, Pankaj Kapoor, managing director at Liases Foras, claims that inquiries and purchases from NRIs have swelled but have not breached any of their previous investment sprees. Noteworthy here is that share of investments by NRIs last spiked in 2012 to 20-25 percent but has plummeted in the following years.