Bengaluru, December 18, 2015: A lot has been spoken about the return of the NRI to the Indian real estate scene. This puts forth the question- Had they ever disappeared from the Indian real estate scene? Apparently, it is believed that they had beaten a partial retreat from Indian real estate in the past couple of years. A reason for this was that they were put off by the negative hype that the media had been spreading about this sector and also the fact that the market was not friendly to their needs. Fortunately, now things have changed, and NRIs are seeking to buy villas and apartments southern prime cities of India such as Bangalore and Chennai. Shankarpally plots are in demand in Hyderabad.
l Lesson learnt from the past
Some years ago, a segment of NRIs had burned their fingers on property purchases. Because of this, they were unable to judge what the right kinds of deals were. As a result, many fell prey to fraudulent claims by mercenary developers, who had begun marketing their projects as ‘NRI havens’ in the hope of roping in unsuspecting non-resident buyers. In many cases, a few projects were not cleared for development at all. And in other cases, the developers were severely undercapitalized and therefore not well placed to complete their undertakings. In other instances, the properties that the developer delivered showed substantial deviations from the original plans. Many a times, developers trumped a certain area as the next boom area. Unfortunately, the land would remain barren, bereft of even the most fundamental infrastructure and thus, unable to draw demand.
Countless NRIs fell into money traps and were unable to liberate themselves. A big disadvantage was that NRIs, did not have the advantage of being physically present in the country. They were unable to engage in court battles with the errant developers on their home turf. They ended up making hasty investments after being held hostage by developers who had used them to raise interest-free capital for their projects but failed to deliver on their promises.
l NRIs can now sail on calm waters
Today, the scenario has shifted considerably for NRIs. They are taking all the necessary measures to stay well-informed. Additionally, the Indian real estate market itself has become more regulated. The incumbent government has been working towards making the real estate sector a better place to deal in, by targeting illegal constructions and unfair market practices.
At the same time, the market itself has evolved with the times. Massive integrated township projects by reputed developers present NRIs with an obvious option of transparency, advanced lifestyle and assured returns on investment. Many of these projects meet international standards of excellence regarding standalone infrastructure, connectivity, safety and convenience.
l Introduction of integrated townships
Integrated townships have turned out to be the ideal option for NRI property buyers in more ways than one. While the construction of such projects does take longer than smaller residential projects, NRIs who reside abroad are looking for genuine developers. They desire to know that they are investing into a project, which will fully meet all their requirements on their return to India. If a township project is backed by the reputation of an established, adequately capitalized developer, they know that their investment is secure. Investors are looking forward to buying a plot in Hyderabad, Bangalore, and Mumbai.
The increasing ease of investment, along with the attractive scenario that the depreciating rupee presents against the currencies that NRIs earn in, has done a lot to woo NRIs back to the Indian property sector.
With the NRI community back in force, they can make well-calculated long-term plans in the country’s real estate landscape.
Corporate Comm India(CCI Newswire)