Friday, 10 February 2012

Chennai tops in NRI demand in US

In a survey conducted during the property show held in Edison, NJ, it has been estimated that 31% of the visitors preferred Chennai for investment in real estate. The demand for other cities ranged from Bangalore, Hyderabad, Mumbai, Ahmedabad, Pune, Delhi, Coimbatore, Kochi to Visakhapatnam.

Unlike earlier, the categories of properties preferred ranged from apartments to villas and developed plots. In fact the demand for villas in the vicinity of Chennai among US NRIs has shown an upward trend with the availability of multiple options, township development and a range of services inbuilt in each and every project. A majority of the visitors desired home loans to partly fund their investment exercise. While a section of the visitors preferred properties for their own use, others opted for getting periodical return on investment.

During the show, guaranteed rental income properties were on display where investors can earn rental income from day one due to tie-up with corporates in Chennai. Investors were keen to enquire more details as that would offset their initial financial outgo as well enable them to offset their EMI through rental income.

Though a full scale recovery is still a long way to go across US, corporates are increasing their spending as is evident from the spurt in demand by techies for rental accommodation in Edison, said a senior official working with an international consultancy firm in New York. There is a spurt in the number of IT projects’ spending in the tristate area with the number of expatriates in particular from India visiting for project related assignments, it is said.

During 2008, apartments were available just for the asking in Edison area due to frequent layoff and expatriates eventually returning home. But today, several apartment complexes are getting filled up, which is a good sign for the gradual improvement in the overall market scenario especially with the H1B quota being utilised fully, said a local resident in Edison.

There is another reason for the trend towards investment in India. NRIs had lost capital values considerably while investing in real estate across US. For instance, an NRI who had invested in housing in Anaheim during 2006 at US$950,000 saw his investment declining to US$625,000 in a matter of just six months. Another NRI who had put his investment in housing in Orlando saw his investment nose-diving from US$400,000 to US$125,000, according to market sources.


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