Friday, Jun 05, 2009
Gulf News
Dubai: Favourable exchange rates mean that India is now a blossoming real estate source, especially for non-resident Indians (NRIs) in the Gulf.
Many of the properties available in India are already completed and ready to move into, an attractive prospect.
"NRIs are finding this a good time in India for three reasons. Firstly, the exchange rate is favourable, the property prices have experienced a correction and thirdly, with a new government in place and the stock market doing well, people feel that property prices will rise again and want to catch the curve before then," Abid Junaid, executive director of ETA Star Properties, told Gulf News.
India is a vast market and one that is in very close geographical proximity to the Dubai market and the wider Gulf.
International companies have already spotted a huge gap in the property market on the sub-continent. Local firm Al Habtoor Engineering and Australia's largest contractor and project developer, Leighton Holdings are both operating in the country.
Prices vary from city to city as India is so huge, but Junaid said there is increased interest in Bangalore and Chennai.
Nainesh Shah, secretary of the Confederation of Real Estate Developers Association of India (Credai) and chairman of International Exhibitions, MCHI agreed, saying Indian real estate had seen "a fair amount of correction from the peak property prices".
Reports estimate correction at nearly 15-30 per cent in 2008 with another 25 per cent expected this year. But it of course varies according to the location.
The Maharashtra Chamber of Housing Industry (MCHI) is trying to encourage NRIs and other investors to put money from the Middle East back into India.
"NRIs are taking a fresh look at India as a stable market in which they can invest or even turn to for lucrative entrepreneurial opportunities in sectors like finance, banking, insurance&telecom, medicine, pharma and education," said Zubin Mehta, chief executive of MCHI.
"Residential property prices have become more affordable and more attractive for NRIs, particularly for Dubai NRIs," said J.S. Augustine, co-ordinator at MCHI and co-chair of International Exhibitions.
Another important factor to be taken into account, especially for NRIs wishing to put money back into India, particularly in the real estate sector, is a relatively stronger dollar.
Thursday's exchange rate showed one dollar equals Rs47.05 compared to an average of Rs43 in 2008 and Rs41 in 2007. As the UAE currency is pegged to the dollar, a stronger currency means a higher purchase power.
By Suzanne Fenton, Staff Reporter
Gulf News 2009. All rights reserved.
