This may be the right time for NRIs who wish to buy property in India but there are reasons which are holding them back. Developers across India acknowledge that the number of enquiries from NRIs have certainly increased in the wake of appreciation in US Dollar’s exchange rate againt Rupee, but they are not necessarily translating into transactions.
Arjun Agarwal, director and chief executive officer of Bangalore-based real estate developer Bhartiya Urban, states different reasons for this. “Some are expecting more depreciation in the Rupee’s value, some want the dust to settle and some find prices unrealistic,” says Aggarwal.
Yashwant Dalal, president of the Estate Agents Association of India, at the other end, says, “For NRIs, who wish to book profits and liquidate their assets for some reasons, depreciation in Rupee’s value is not good news.”
“The actual returns squeeze when the gains in Rupee are converted into US Dollar,” he explains, adding, “In this scenario, an NRI buyer has no option but to re-invest in India and this may not always be the preference.”
Dalal, who is based out of Mumbai, also feels that property prices in Mumbai had reached the peak years ago, and now many parts of Navi Mumbai are also experiencing artificial hike. “Property prices at places such as Wadala and Sewri are touching the levels of Dadar,” Dalal adds.
AP Mull, president, Consulting Engineers Association of India, is also of the opinion that high property prices in Mumbai are keeping NRI buyers away from the market. As per industry reports, levels of property prices in Mumbai float at par with New York, London and Tokyo. However, the presence and quality of infrastructure in the city is far from the global standards.