What NRIs need to do before buying property in India?

Non-resident Indians (NRIs) need to be vigilant and do their research before buying a property in India, says the exhibitor of a property show.

“One looking to buy a property in India must do his research well before investing in a property though the chances of being ripped off are much lower these days,” Sunil Jaiswal, CEO, Sumansa Exhibitions, organisers of Indian Property Show, told Emirates 24|7.

“You have the internet; you can do your research about the developer, or simply call people back home to check the developer’s reputation. I don’t think people do buy just on instinct anymore,” he added.

Investment in Indian property sector is one of the best investments among asset classes for various reasons including tangibility, less volatility, rental income and appreciating asset. JLL, a global real estate consultancy, said earlier that capital appreciation on real estate is far higher than the high-yielding deposits for NRIs.

“If you maintain a broad investment horizon and have chosen properties well, the capital appreciation on real estate translates into multi-fold putting all other asset classes behind,” Jaiswal said.

The 14th edition of the property show was opened on Thursday by Bollywood star Arbaaz Khan, who is the brand ambassador for the event. With four distinct pavilions, 40,000 properties, worth Dh16 billion, are on display by over 150 developers. The organisers expect to witness business transactions worth Dh343 million, which will be about 12 per cent higher than last year.

The three-day property event is being held from June 12 at Dubai World Trade Centre.

“Real estate sector has always been at the top of investment opportunity watch-list of non-resident Indians. A place in the homeland also gives a sentimental support and sense of security, which is another reason for their investment in real estate. NRIs invested over Dh7.34 billion ($2 billion) in Indian real estate in 2013,” said Honey Katiyal, CEO, Investors Clinic.

NRIs spent at least 35 per cent more in real estate across the country in 2013 compared with the previous year and made for almost 12 per cent of total apartment sales in the top seven cities. The Dh7.34 billion investments, however, does not include Punjab, Gujarat and Kerala states where a bulk of repatriation happens.

According to the World Bank, India led remittance flows globally, receiving $70 billion in 2013, which eventually leads to investments in real estate.

The Housing Sentiment Index, released by IIM Bangalore and Magicbricks.com in May, found that home buyers across eight of 10 cities surveyed expect real estate prices to go up over the next six months.

Cities surveyed include Ahmedabad, Kolkata, Mumbai, Delhi, Hyderabad, Pune, Noida, Gurgaon, Bangalore and Chennai.

Nearly 70 per cent of the people surveyed preferred to buy apartments, IIM Bangalore-Magicbricks.com report said.

Pratik Patel, Director, Rajesh LifeSpaces, believes NRIs usually look for a property that can replicate their standard of living regardless whether the property will be utilised for end use or taken purely from an investment point of view.

“They don’t like to compromise on standards, convenience of lifestyle options and most importantly security. Any property with the said features and ranging anywhere between Dh600, 000 and Dh1.5 million is popular with them”, he added.

Source: Emirates 24X7

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The Trend of Townships - Buzzword in Indian Real Estate

There is new era of integrated township started in Indian Real Estate. This new phenomena has been catching the attention of real estate buyers who wish to receive basic needs like education, shopping infrastructure and health care in a single project. Let’s get insight of these self-sustained ventures and their popularity.

Township: No doubt, India has witnessed the tremendous growth in real estate as a result of urbanization and industrialization over the years. Even constant increase in population has been pushing enormous rise in demand for real estate and infrastructure. Of lately, the needs and priorities of people towards properties has been changed. Earlier real estate buyers used to satisfy with standalone properties but now they look for a package wonderful as a whole including luxurious branded residences along with high-end retail spaces and grand corporate suits. The concept of integrated township caters to such needs and brings the new wave of trend where a residential parcel is combined along with a commercial establishment, entertainment zone and corporate space.

The New Wave: The New Wave Townships are the future of residential real estate. Investors willing to park their money in township projects should look for the right combination of factors that will be useful for them. With the entry of private real estate developers, the Indian property sector is witnessing major changes and is prospering. Modern townships and other development projects by private players have revamped the realty sector. The country is witnessing a new phase of development that is not only restricted to metropolitans but is also spreading to tier II and tier III cities, although the real estate property of Bangalore has been witnessing maximum growth over the last few years.

The altering trends, growing needs, changing habits and the desire to rise socially – all these factors play a crucial role in deciding what a buyer opts for. Integrated townships not only offer awe-inspiring infrastructure with amenities galore but there are also provisions like schools, hospitals, gymnasiums, clubhouses, swimming pools and shopping complexes to uplift the residents’ standard of living. Townships also decrease the socio-economic divide among the occupants by presenting similar residential units and providing same facilities to all. People feel highly secure being residents of group housing societies that offer a healthy & progressive environment for occupants. Today many of renowned real estate developers like Sikka are coming up with this one-of –kind townships along with eco-friendly environment and vast open spaces.

Townships lure NRIs: Non Residential Indians have been increasingly giving back to their homeland. They consider it as a safe investment that gives them a sense of security. This trend has massively increased with the downfall of the Indian Rupee. NRIs are making most this opportunity and parking money in the Indian property market. NRIs are also drawn to the larger interest rates on Non-Resident External and Foreign Currency Non-Resident deposits. Foreign investors seeking to buy a unit in a township project must study all parameters in detail and should remember huge land parcels for townships are rarely available in the midst of the city. But that should not compel you to buy a house in a development that is far away and cut off from the main city. Potential investors who wish to become home owners in one of the residential units of a township can seek financial aid from banks. The Indian property sector is expected to expand to US$ 90 billion by the year 2015 and FDI is likely to grow six-fold to US$ 30 billion in the following decade, making Indian townships a haven for investment.  

Reference URL: http://realtybiznews.com/indian-real-estate-welcomes-the-trend-of-townships/98723816/

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