NRI Alert: Buy India property, get 10% bonus

Non-resident Indians (NRIs) buying property in India today can easily save up to 10 per cent on their investment due to a weakened Rupee, with real estate experts expecting property appreciation driven by favourable economic conditions.

“Property prices in Mumbai have appreciated 15 per cent per year. We believe it is a great time to buy in India as the economic fundamentals are strong due to a stable government coming in and we think India will do well,” Rajit Mehta, Assistant Vice President, Sales and Marketing, Sunteck Realty Limited, told Emirates 24/7.

 “The US dollar is back at 62 level and if the Indian economy does well and the dollar rate does correct to a 55 to 57 level, NRIs can see a 10 per cent saving on their investment.”

Mehta, however, rules out price correction in the Mumbai property market, saying, “I don’t see them correcting… they have stabilised right now. Certain micro pockets where there is ample of supply may correct a little, but being an island city it will always have that edge.”

Sunteck’s, an Indian Stock Exchange-listed company, units in its “Signature Island BKC” is priced at Dh42 million to Dh48 million.

Mumbai emerged as the most popular property investment destination for UAE-based NRIs followed by Bangalore and Pune, a survey by Sumansa Exhibitions, organisers of the Indian Property Show (IPS), revealed.

Sunil Jaiswal, President, Sumansa Exhibitions, also believes time is good for real estate investment for NRIs back home.

“NRIs are still in a very favourable position as they can leverage the power of weak rupee to invest for better returns and go for higher value transactions. For an NRI, Indian property is certainly more affordable now,” he adds.

A report by PricewaterhouseCoopers (PwC), an international consultancy, India has an opportunity to build a $10 trillion economy over two decades with an ambition of nine per cent gross domestic product growth.

At least 45,000 properties worth Dh15 billion is being showcased at the 15th edition of three-day Indian Property Show, which is being held at Dubai World Trade Centre. Developers are expecting brisk business worth Dh420 million during the event.

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