NRIs rush to buy property on rupee, reforms
Vipul, Consul-General of India in Dubai; Shishir Kapadia, Senior Vice-President for Finance and Operations, Khaleej Times; Vicky Kapur, Executive Editor of Khaleej Times; and Bikram Vohra, Editorial Consultant of Khaleej Times, at the opening of the Indian Real Estate Show in Dubai on Friday.
Dubai - Second edition of KT-presented India Real Estate Show features over 40 developers offering wide and varied realty options
Dubai resident Deepak Mulay hurried to fill his entry pass on the first day of the India Real Estate Show (IRES) on Friday as the crowd started pouring in. Mulay, who already has three properties in Pune, plans to sell them and relocate to a prime area and with extra space - and his reason for doing so is favourable market conditions.
The Dubai resident of eight years said: "I am planning to buy a bigger space within my budget as the market is currently offering me multiple choices. We as NRIs have benefited from the current situation where positive measures and a stable government have propelled buying activity from the UAE."
The second edition of IRES features more than 40 developers offering wide and varied options to NRIs buying homes from affordable segments to luxury villas.
Dubai offers a platform to developers from India under the realty exhibition with an aim to welcome almost 3,000 participants. The two-day exhibition was inaugurated by Vipul, Consul-general of India in Dubai.
"The opportunity in India is big and despite the global slowdown we continue to be the largest economy, which is doing well and real estate is one sector that will drive economic growth. The sector was estimated at $120 billion in 2017 and is expected to grow to $1 trillion by 2030. The sector is poised to project a growth of 12-13 per cent by 2025. The government has taken measures for affordable housing and protecting customers in the real estate sector that should help propel demand," said Vipul.
Speaking on India-UAE bilateral trade ties, Vipul said: "UAE-India trade ties have been very strong over the period of time and this is reflected in events like IRES, where the developers are offered a platform to offer their projects. India has a lot to offer to the UAE, which has great potential in investing abroad, while India can assure them good returns on investments in key sectors, this is a win-win situation for both the nations. Also, India will invest in a big way in Expo 2020 Dubai and India's real estate sector will also play a major role in it."
Sugee Group, a gold sponsor and which is making its debut at the exhibition, is very optimistic that NRIs will benefit from the current market conditions.
Pritesh Jain, director for sales and project finance at Sugee Group, said: "The current market condition paves the way for investors who can expect good returns from investing in Indian real estate. Currently, the market has turned into a buyers' market and is currently laced with attractive finance schemes. Policy measures taken by the introduction of the Real Estate Regulation and Development Act of 2016 has added to restoring buyers interest."
The top three areas in Mumbai that are of interest to NRIs, according to Jain, are South Mumbai, Central Mumbai, Andheri and Borivali.
Analysts have observed a spurt in NRIs buying properties in India in recent weeks as the onset of the festive season has coincided with a slew of measures introduced by the Reserve Bank of India, which cut lending rates to ease the markets and boost liquidity. Also the introduction of Rera coupled with a drop in GST and a depreciating rupee bode well for NRIs.
Rajesh Nambiar, executive director at Nambiar Builders, said: "The drop in GST to 5 per cent has been a major boost for property buyers and stability provided by the government definitely gives NRIs hope of investing in something that is lucrative... most NRIs prefer Bengaluru and Pune."
Dubai-based developer Sobha affirmed that its long-term branding within the UAE has helped it to boost operations in India, offering NRIs the same level of comfort they get in the UAE.
Vinay Kumar, head of international marketing at Sobha, said: "Sobha has been an established and popular brand among NRIs and that has helped us to convert queries into serious deals. Currently we have projects in 11 cities in India and continue to expand our operations."
Dubai resident Lester Desouza was attending IRES to check properties in Goa and Pune from investment perspective.
Desouza said: "The UAE market offers better financing options and hence we are exploring to purchase new property in this exhibition."
A large crowd flocked to the India Real Estate Show in Dubai on Friday, hoping to land the best property deals.