Business Daily from THE HINDU group of publications
Monday, Aug 25, 2008
ePaper | Mobile/PDA Version | Audio
Business Daily from THE HINDU group of publications Monday, Aug 25, 2008 ePaper | Mobile/PDA Version | Audio |
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Industry & Economy
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Real Estate & Construction Web Extras - NRIs NRIs upbeat on investing in real estate Manish Basu Kolkata, Aug 24 At a time when the domestic demand for houses and flats has slowed down, the NRI investment in real estates is showing an upward trend. In past six months, the NRI investment has grown between 10 and 25 per cent over the previous six months, according to real estate experts. The experts would attribute it to the tendency among the NRIs to stay invested over a time frame of three to seven years when the market was expected to pick up. The NRIs were also looking at properties available at a discount in a moderate market scenario, they observed. “The NRIs are now on a negotiating mode and the bulk deals are being transacted at a 5-15 per cent discount depending upon projects,” said Mr Rajesh Goenka, Chairman and CEO, Axiom Estates, a London-headquartered international property dealer. “The number of bulk deals (more than 10 apartments at a time) has jumped in last 6 months while retail NRI investments have grown by 10-12 per cent,” he said. Bulk deals accounted for 20 per cent of total NRI investments, he added. “The real estate market in the UK and the US has dampened compared to India making it a safer destination for long term investments,” he said. Unlike India, the expectations about the property value appreciation in those countries over a 5-year time frame were not high, he said. The property prices decreased by 10-15 per cent in UK and by 25-40 per cent in US over the last one year.
Pure investments for capital gains, Mr Goenka said, constituted nearly 70 per cent of total NRI investment in properties. Mr Abhijit Das, Regional Director, JLL Meghraj, however believed the NRIs, looking to buy properties in homeland with a view to settling down later, helped maintain the stability of the market. Mr Rahul Todi, Managing Director, Shrachi, said the NRIs constitute 15-20 per cent of sales across its different projects. Real estate investments, led by world class construction and more ready to use high-end projects for the NRIs, doubled in past two years, he added. More Stories on : Real Estate & Construction | NRIs
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