The Hindu Business Line : ‘India’s economic development luring NRI investments’

Coimbatore, Aug. 6 The economic growth story is attracting investments in properties in India by NRIs and home sales to NRIs has tripled in the last six months, according to an executive from property portal IndiaProperty.com.

The company, which conducted a property show in Dubai that drew overwhelming response, is holding a property fair in Singapore, which has a large ethnic Indian population, on August 23 and 24.

Speaking to newsmen in Coimbatore on Wednesday, Mr T. Shrikanth, National Head-Sales and Operations, IndiaProperty.com, which belongs to Consim Info Pvt Ltd (earlier known as BharatMatrimony group), said according to a survey by consultants Jones Lang La Salle Meghraj (JLLM), home sales to the NRIs had gone up from 3 per cent to 10 per cent of the total sales in the last six months at a time when the domestic real estate sales had seen a slump due to reasons like inflation, property prices going up, interest rate spike etc.

Explaining the reasons for the growing interest of NRIs to invest in their homeland, he said the pace of economic growth and the infrastructure development are beckoning them. Earlier even basic needs like phones or LPG connections were hard to get but these have now become easily available. The employability and compensation packages also have gone up in India so much that Indians settled even in the US could come back and live a comparable life at a fraction of the cost in the US.

There was a genuine interest among the ‘new Indians’ (not the second or third generation Indians living abroad) to keep the ‘umbilical cord’ with India, if they choose to come back. What held back the Indians living abroad earlier was the transition they had to make from a developed country to a developing one. But the developments India had undergone convinced them that the transition is not a tough one to make.

He said there are also NRIs who are looking at investing in India not with a view to coming back and living in their properties but as an investment option because of the good yield potential.

Mr Shrikanth said the NRIs were looking at different options such as investing in villas, apartments, plots and farm houses and the exhibition to be held in Singapore would offer these properties to the investors. The Indian real estate market was growing at 30-35 per cent rate and is expected to maintain it for the next 10 years.

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