Square Yards, one of India’s biggest real estate aggregation and transaction platforms with a sizable global presence, has achieved record sales volumes and market share alike in spite of the nationwide lockdown. A major chunk of investments have been made by NRIs, particularly those residing in the Gulf. Anupam Rastogi, Co-Founder and Head GCC at Square Yards, has opined that this is the best time for NRIs to invest in Indian real estate.
There are approximately 28 million Indians living worldwide and upon repatriation of their income back home, this becomes the biggest inward remittance figure worldwide, in excess of $70 billion yearly. A majority of this money is invested in real estate, driving expansion and growth in the sector. However, the nationwide lockdown and COVID-19 pandemic have impacted incomes of households, consumer spends and almost all sectors of the economy including the construction industry.
Also read: COVID-19 could present a hidden opportunity for Indian real estate according to Tanuj Shori
Yet, in spite of these challenges, Anupam Rastogi has outlined some compelling reasons to invest in the Indian real estate market at present. These include the following:
- Security- India has set a global benchmark in tackling fluctuations in the market and health crises alike. India has been firm throughout the 2008 global recession and NRIs will find it safer to invest in property here. Measures like GST and RERA by the Government have scaled up confidence levels amongst NRI investors.
- Repo Rate Cut- Home loan interest rates are now considerably cheaper with the cumulative repo rate cut of 115 basis points till now in 2020. The repo rate now stands at 4% and this should be a good reason for those on the fence to finally invest in real estate. NRIs will naturally appreciate lower costs of borrowing and easier loan availability.
- Lower Prices- Real estate developers are now offering several freebies and attractive prices to buyers. NRIs can take advantage of lower property prices and corrections to own homes in their country. 10-20% lower prices are expected for properties priced upwards of Rs. 25 million while properties between Rs. 10-15 million may see slight price cuts as well.
- Compelling Payment Plans- Several developers are offering flexible and attractive payment schemes/plans. Godrej, for example, has come up with its 10:90 scheme where buyers only have to pay 10% now. Deferred payment plans are becoming hugely popular amongst NRI investors, enabling them to save at least 5-6% of overall property costs in the long run.
- Rupee Depreciation- The rupee has spiraled downwards owing to the economic and geopolitical fluctuations arising from the COVID-19 outbreak. The rupee came down to a record Rs. 76.8 against the US dollar before recovering slightly. This will attract NRIs looking to invest in real estate, particularly with the gold prices and stock markets in freefall. The rupee has witnessed approximately 9% of depreciation over the last couple of years. A further dip will help NRIs save a whopping 10% or more while investing in Indian Real Estate.
Rastogi has thus opined that this is the best time for NRIs to invest in real estate back home.
Published Date: 1 August 2020
