Chennai tops in housing demand in Malaysia

Chennai

Out of an estimated 2 million NRIs/PIOs living in Malaysia, southern cities dominate the demand for investment in residential property in India. Those who have settled across Malaysia for decades are keen to invest in their second homes for holidays in India. Among the southern cities that drive demand for investment in real estate Chennai dominate due to a combination of factors.

Of late a number of expatriates working in Malaysia are from the IT sector with the establishment of Indian IT companies like TCS, Infosys, Wipro and others. In fact an exclusive zone Cyber Jaya adjacent to the government complex Putra Jaya, houses a number of IT companies from various countries rendering a wide range of services.

According to Indian banking sources, the demand for home loans continues for units located in southern cities in particular from Chennai. There are not many estate agents operating in Kuala Lumpur though a few local representatives do represent Indian properties to expatriates in Kuala Lumpur, Klang, Penang and Johor. Besides Chennai, demand for real estate investment exists for other Indian cities like Hyderabad, Bangalore, Kochi, Chandigarh and Delhi. Apart from a few property shows, periodical visits by Indian developers provide the ideal platform for exchange of information on investment in Indian real estate.

A number of PIOs who met during a convention in Kuala Lumpur recently evinced keen interest for investment in India particular in areas like real estate. Leased commercial properties are the preferred option where return on investment in the region of 10-11 per cent is desired apart from project level investments.

For NRIs, availability of property management companies is a major requirement for investment in residential or commercial properties. The influx of multinational property management companies and the availability of such services in major cities across India have not percolated down the level among NRIs in Malaysia.

According to Juliana Louis, CEO of Evershines Realtor, a local realty firm, the level of NRI/PIO demand for real estate investment in Indian cities is gradually up due to the price appreciation and the easing of investment norms by the government. Lack of adequate information on availability of property management services is a major deterrent, she adds.

V Nagarajan, Property Consultant