Involvement Of Expat Community In Indian Realty

The realty scene has evolved considerably in the last two decades. When cities like Gurgaon, Noida, Hyderabad and Pune started to develop, their pre-existence was in the form of either villages or historical towns. Urbanization in all these cities was rapid.

Noida emerged well planned; while Gurgaon merely evolved out of the vast tracts of land available in the vicinity of Delhi and developed haphazardly. Real estate in Noida as well as Gurgaon suddenly became extremely valuable and many rags to riches stories were played out during the development of both the cities.

Even though Gurgaon became the first city to earn a multi-national (GE), Noida was never far behind. Both the cities developed at a neck-to-neck pace. They attracted both residential buyers as well as commercial lessees. It is because of these 2 cities that the NCR became the economic hub of north India. Even today, if one plans to buy flat in Noida, the prices are at par with those of Delhi and Gurgaon.

Over the years the realty market continued to grow and then suddenly slowed down post 2010. After a few years of relatively slow growth, the Indian realty is undergoing normalization and robust growth across all territories has been projected.

Involvement Of Expat Community In Indian Realty

The Rising Demand

Industry projections paint a favourable picture for the property sector. With stable government and new reforms being introduced, the property sector of India is set to become more streamlined. The average projected growth of the realty sector has been assessed at 5% to 6% annually if pessimistic estimates are considered. The positive estimates show an even higher growth. Territories like Kolkata have witnessed a sudden surge in demand and development this year.

In this environment and the overall improvements in the economy, more and more buyers are being created. However a robust demand has been put forward by the expat community. The inauguration of Trump Towers in Mumbai and Pune, the full-floor apartments in Chennai and an ever increasing number of expats settling in their home towns have raised the bar for quality accommodations in the country.

More and more foreign companies are entering the realty markets in collaboration with Indian firms.

Involvement of Expat Community

During the slowdown, the Indian buyers were unable to handle the supply from the realty sector. If some experts are to be believed, builders turned to the expat community following the slowdown. In the tough local conditions, they aggressively marketed themselves to Indians settled abroad.

The downturn became a cloud with a silver lining. As inflation increased and the rupee depreciated, more and more expats found that they had free money to invest in the Indian market. A dollar could now buy more Indian rupees and these expats could now purchase good quality homes at a relatively lesser costs in their home country. Therefore when the builder showed their willingness to meet the quality standards demanded by the expat community, more and more buyers became interested.

A huge demand comes from UAE and the Middle East where a large number of Indians have migrated over the years. Other large markets include US, Europe, Canada and Singapore. The UAE buyers comprise of a large number of migrant workers who also add to the sales volume of nominal accommodations. Other markets call for better quality world class accommodations.

In Conclusion 

The NRI purchases account for 15% to 20% of the overall sales in the Indian realty market. Their demands have also brought about competition and induced better quality in building designs.

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