Real estate projects and especially luxury homes are seeing an increased from NRIs. Here's a checklist for them to avoid buyers remorse.
Moneyed non-resident Indians (NRIs) are looking to scoop up luxury residential properties in India. The ticket size of demand for residential real estate from this demographic has increased to Rs 90 lakh to Rs 2.5 lakh crore post pandemic.
This demand has increased from 41% in the pandemic-afflicted first half of 2020 to 73%.
The notional security provided by physical assets, Covid-related uncertainties, ongoing developer discounts, and depreciating value of INR which translates into more bang for foreign currencies in India, are some of the top listed reasons, the survey found.
Out of those polled, 67% want to buy ready-to-move homes and IT hubs such as Gurugram ,Bengaluru and Pune witnessing maximum interest.
Collectively, these two cities saw approximately 48,370 homes sold in 2020 - accounting for a 35% sales share among the top 7 cities, it added.
Owing to heavy investment that’s associated with real estate, buyer’s remorse is not an option for those who value money or their mental health —the two are heavily co-related as lockdown-era job losses and salary cuts testified.
Good time to buy?
While this question merits an entire another news report in itself, for now, it can be safe to piggyback on veteran professionals and industry insiders’ view. They opine it’s not a bad time to invest either given a host of factors such as the current slowdown in the market, attractive discounts and freebies, lower currency rate —underpinning the current spike in demand from the members of the diaspora.
Mani Rangarajan, Group COO, Housing.com, Makaan.com & PropTiger.com told ET Now Digital, "millennials are looking at owning a house across the globe and this has also led to the trend of reverse migration, which has pushed demand, especially in Tier I & II markets. This has also led to the emergence of micro markets adjacent to the prime realty markets in the country".
"From capital investment point, cities like Gurugram, Mumbai, Bangaluru and Pune are some markets where you have good rental yield and the availability of ready-to-move-in options also opens up an opportunity where the NRIs can start earning the moment they buy a property," he added.
Checklist for safeguard against unethical practices
Builder reputation: It is of utmost importance that brokers stick with established developer names who have a history of delivering projects over a period. NRI investors especially need to know how to safeguard themselves from unethical practices - by both real estate developers and property brokers.
He feels NRI investors need to be extra careful with under-construction projects which are a hit among the demographic.
“Developer’s reputation is of paramount importance. NRI investors should avoid housing projects by unknown developers, especially when it comes to under-construction projects,” he adds.
RERA certification: It is mandatory for every under-construction housing project in India to be certified under the Real Estate (Regulation and Development) Act, 2016 (RERA). Projects which are not RERA-certified invariably spell trouble, thinks Jacob.
Even with RERA certification, all housing projects are not created equal. Projects by reputed developers are the best bet for safe real estate investment. NRIs should verify the credibility of the builder, including his past track record for timely completion of projects as well as construction quality and inclusion of sufficient amenities.
Legal status of property: Whether the developer owns the land on which the housing project is being planned and whether the project has all requisite permissions are crucial factors that must be verified.
Buyers - especially NRI buyers - need to verify the legal status of a project and have every right to ask for all relevant documentation, added Jacob.
Documents required
NRIs and Person of Indian Origin (PIO) can make payments out of funds remitted to India and funds held in NRE/ FCNR (B) / NRO account. Like a normal Indian citizen, NRIs/PIOs too can avail of home loans for their property purchases. Hiring a lawyer to prepare the documents is also crucial to ensure no forgery and secure investment
If you want to Invest in India Gurugram is the best location where you are buying, selling, renting or investing in Indien property.
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