Chennai drives more NRI buyers

Chennai

The rupee volatility against US dollar and other linked currencies, overseas institutions’ lending at 4 per cent and favourable exchange rates have all convinced NRIs/PIOs to take advantage of the instant opportunity and plunge into real estate investment in Chennai. In a nutshell, it has become 20 per cent more affordable for NRIs/PIOs due to rupee parity rates alone. Leading developers have reported a quantum jump in the number of enquiries over a period of 3-4 months.

According to industry sources, most of them prefer built units for ready occupation of their parents or relatives and some are looking for periodical return on investment. They are willing to pay the extra premium to get the built units over ongoing projects in and around the city. The preferred price range for apartments varies from Rs 30 lakh to Rs 1 crore. This is apart from the surge in demand for developed plots and villas in and around the city. However, leading land developers do not agree with the view and see no perceptible shift in trend for demand.

There are others who feel that the preferred investment locations are OMR, ECR and parts of Velachery as considerable development is visible in those areas. Competitive lending rate from overseas financial institutions is yet another tilting factor that has encouraged a number of NRIs to mobilise upfront payment overseas for investment in real estate back home. A few of them are even finding it more convenient to raise local funding than through home loans with Indian housing finance companies and banks now.

Moreover, favourable exchange rates have given them additional benefit to borrow locally and remit to India. India has been consistently maintaining its top slot in NRI remittance in the world received from Indian Diaspora globally. Even though Gulf countries are taking more time to recover in the aftermath of economic meltdown, expatriates are now convinced that the job market has become stable unlike a year ago, say Gulf realty outlets. This has resulted in the quantum of NRI enquiries for investment in immovable property in the city going up by 50 per cent over last year, say leading developers.

Interestingly, the demand from NRIs in USA has increased considerably. Local funding at competitive lending rates and loans for expatriates maintaining good credit history at zero per cent interest rates have nudged NRIs to take advantage of the current situation and plough back money into real estate back home.

V Nagarajan, Property Consultant

Source: http://content.magicbricks.com/chennai-drives-more-nri-buyers-2