The Indian real estate landscape has undergone a metamorphosis, becoming a mature and a regulated sector, thereby enticing NRIs with best prices, investment options and lucrative returns. Sharing these sentiments, Pune’s renowned developer, Sachin Bhandari, Executive Director & CEO, VTP Realty added, “The data shows that more than 60 percent of any investment by an Indian goes to real estate. The stock market has lost its charm, because of the high uncertainties, while, if one is investing in real estate one can have monthly income as well as long term capital gain. Not surprisingly, the NRI segment of buyers is expanding with NRI sales almost doubling in the last two years.”
Concurring to the views, Shajai Jacob, Managing Director & Country Head – ANACITY & ApnaComplex, ANAROCK Group Business Services said, “Almost 75 percent of an individual’s holdings are dedicated to the real estate in India. And on an average, 25% of real estate purchases are by NRIs with their preference being for branded developers. The sector is shock proof as RERA is in place and regulations are on point, giving confidence to the foreign buyers. Moreover, the reasonable pricing compared to other countries and availability of quality projects with lifestyle amenities are attracting the NRI buyer.”
Sapna Srivastava, Editor, Realty+ summarizing the potential of Indian real estate as expressed by the key players of the sector stated, “The economic reforms, liberalisation of investment policies and the introduction of RERA and GST have eased the regulatory hurdles for NRIs to acquire property in India. The increased transparency and professionalism in the sector, has been the main driver of both domestic and foreign investments in Indian real estate.”
PREFERRED CITIES
When asked about top cities recommendations for the investors to invest in real estate Sachin Bhandhari said, “I am from Pune so of course Pune tops my list, but also it has a prominent and organized residential real estate that too at a reasonable pricing. Following Pune would be Hyderabad, Bangalore, being the IT hub with good business and job opportunities and lastly Mumbai and Delhi-NCR as they offer luxury properties and sophisticated lifestyle.
According to Shajai Jacob each city has a unique proposition to offer. “The metros and tier 1 cities offer great rental income while tier 2 and 3 cities have a scope of fantastic property appreciation. I believe, it is important for the NRI investor to consider their own investment strategy, horizon and return expectations to decide the city as all cities of India offer a good choice for investment.”
THE WAY FORWARD
Talking about the challenges that need to be addressed, Sachin Bhandari expressed, “The biggest roadblock, I consider is the lack of brand commitment by real estate developers. For an example if you buy a car, you know what that brand stands for and what to expect. This is what the Indian developers should also offer to the client. As a developer, we need to work on this aspect and not just create a hype about the brand as a marketing gimmick. Brand is something that people should trust blindly. Real estate lacks in this brand commitment, while other industries have succeeded in creating brand and that is something we can adopt.”
Sharing his views Shajai Jacob was of the opinion, “There is no doubt that in terms of sales, there are no hardships for the developers, what needs to be addressed is the after sales service by the developer. This is where the NRI’s face challenges. From detailed information about the project and construction updates to property management and the processes in between have to be taken care by the real estate firms.”
Sapna Srivatsava concluded, “Industry reports suggest a clear preference for branded developers among NRIs for the fact that they rely on their brand promise. And the biggest concern expressed by NRI buyers has been the lack of information and clarity in the property purchase process.”
The contribution of NRIs to premium real estate sales has more than doubled to 20% of all transactions as the historical and predicted return on investments in all segments of Indian real estate offers lucrative investment potential for NRIs.
India presents a huge spectrum of investment in real estate whatever kind of investor are there in the market- Sapna Srivatsava, Realty +
As a developer, we need to work on making a brand commitment and not just create a hype about the brand as marketing gimmick - Sachin Bhandari,VTP Realty
There is a need to up the game when it comes post sales connect between the developer and the NRI investor which somehow is lagging behind - Shajai Jacob, ANAROCK Group
