NRIs Craze for Indian Real Estate

Since the investors making investments in Indian retail sector has become conscious about putting in the volatile equity market at current levels, Non Resident Indians (NRIs) are taking a contrarian stand towards the same.

Nowadays, NRIs seem to be changing their mindset about making investments in Indian real estate. They have invested a whopping 100 crore, in less than two months of the current calendar year. Contrary to this, NRIs had emerged as net buyers at less than Rs 8 crore in 2006. Connoisseurs feel that the corrections witnessed in the past few years have made NRIs bullish on the Indian real estate market. However, they are looking towards reinvesting.

Data complied by surveys clearly show that NRIs have been taking out their money, with the concerns such as high rupee-dollar rate and valuation on mind. All these factors have forced them to reconsider their decision to invest, says the head of brokerage with a sizeable overseas presence.

Although, the value of rupee has increased over the last few months, the corrections witnessed in the equity market have led NRIs to add to their investments, he adds. However, the situation was not the same earlier, when the value of rupee was also appreciating and the equity market was also not flourishing.

Real estate is one sector that NRIs have developed a liking for,” said a research analyst with a domestic brokerage. “Most NRIs from the Gulf region seem to be eternally bullish on the infrastructure sector and ready to invest in any of the real estate companies. In addition, many of the first-time investors also prefer technology stocks,” he added.

Since the past few years, NRIs have shown a large inclination for Indian real estate. But the real craze for Indian property market can be seen among NRIs from the Gulf region, and are willing to invest in any of real estate companies. Also, the increase in foreign direct investment the country is receiving serve as an encouraging factor for most brokerages new-found partiality for the Gulf region.

Source:http://www.nrirealtynews.com/