Non-resident Indians (NRIs) should invest in the Indian property market now because prices have bottomed out and certain pockets are witnessing an uptick in prices, says a senior executive of Indiabulls Housing Finance, one of India’s largest home finance firms.
“Indian real estate market prices are stable now and pick-up signs are visible in certain pockets, especially in the affordable segment, which is in the range of Rs25 lakh [Rs2.5 million; Dh134,000] to Rs70-75 lakh. The affordable segment is doing well and this is where a majority of tractions are happening. And largely, the shortage of housing is also in that segment, so the government is focusing primarily on it,” said Sunil Kumar Gupta, national business manager for credit, IndiaBulls Housing Finance.
He suggested that it is the right time for NRIs to buy property in India now because the consolidation phase that has been going on in the real estate market for 3-4 years is nearing its end, hence, prices now are not really going to go down.
Gupta forecast that pick-up in prices will not be as sharp as was witnessed in early 2000. “Things are moving positively, but not at the pace of what people saw in early 2000 when prices used to appreciate 30-35 per cent every year. They may not see that kind of appreciation but the scenario still looks positive.” Gupta said demand for property from the UAE-based NRIs is mainly for the big cities such as Delhi, Mumbai, Pune, Chennai, Bangalore, Ahmedabad, Cochin and their suburbs as well.
“These are the cities where the UAE-based NRIs are more keen on buying properties because people largely belong to these cities. And anybody who has come to Dubai, the longer interest is largely for work and to finally settle down in India. Hence, buying property in India becomes prominent for this reason,” Gupta said during an interview with Khaleej Times.
According to Gupta, demand from the UAE-based NRIs is largely for apartments – around 90 per cent – in high-rise buildings.
The IndianBulls Housing Finance executive said obtaining housing loan in India is also convenient and the rates are also attractive in the range of 8-8.5 per cent. Plus, tax benefit are also there for property buyers.
“These days, the government is giving subsidies to people buying property in India. So it is fairly convenient for people to go for a loan and easier to buy property. In addition, we also come up with schemes with developers from time-to-time which makes it convenient and lucrative for people to finalise property and take decision much faster,” Gupta added. He revealed that IndiaBulls Housing Finance, which is listed on the National Stock Exchange, is also adding 100-150 fresh customers a month from this region, and a majority of them are UAE-based NRIs.