According to developers, after a dry phase of two years, Non-Resident Indians (NRIs) have gradually began to trickle in buying property in the Mumbai area.
The credit for this goes to the Real Estate Regulatory Authority (RERA) and a generous house loan system, which go hand-in-hand, blending as terrific confidence amplifiers.
The noteworthy fact this time is that, NRIs are more concentrated towards smaller homes instead of deluxe accommodations. The Confederation of Real Estate Developers’ Associations of India (CREDAI), which had held a property bazaar in Dubai in the initial part of December 2017, in which 210 builders exhibited their ventures, had a footfall of 13,500 NRI visitors.
CREDAI president Jaxay Shah stated, “RERA has brought in a new era of transparency in the real-estate sector. This gave the event a strong foundation among the base of NRI buyers.”
Even developers are drawing attention to the fringe benefits of the state-of-affairs after implementation of RERA, in an attempt to fuel sales. Omkar Realtors is presently guiding a campaign abroad to emphasize the manner in which the authorities have given a new shape to the real-estate sector.
“We are holding seminars, roadshows and events in the US, UAE, Hong Kong, Singapore and Australia, to spread awareness about features such as the fixed deadline for getting possession. This has generated a good response. We have sold 25% of our inventory in our Andheri project, Omkar Lawns & Beyond, to NRIs,” said Rahul Maroo, Senior VP and Head of international sales at Omkar.
Hiranandani Builders admit that there is a potent upsurge in response from NRIs to its projects in Thane, Powai and Panvel.
Decades have seen NRIs contributing 20% to 25% in the sales in the Greater Mumbai’s real-estate market. Since the last two years, this number has gone down to around 7%, due to excessive prices, absence of transparency, unscheduled fluctuations in directives and regulations and late and unpredictable deliveries.
As stated by real-estate professional, Ajay Chaturvedi, there are many factors that account for the revival of interest from the NRI society. “There is job insecurity abroad and hence NRIs want to buy houses where they can live in case they decide to return home. Many builders are offering subvention schemes where one has to just pay 5% to 10 % on booking and the rest after possession. These are seen as attractive options,” he said.