NRIs to spend Dh122m in Indian housing plans

Dubai: Non resident Indians (NRIs) in the UAE are expected to invest up to Dh122 million in India's emerging housing market across 16 rural development, according to industry experts.

Sixteen builders from India are offering investment opportunities for the development of 100-150 projects spread out over 1,000 acres of land area.

"We are expecting sales of Dh34.9 million to Dh43.7 million from Abu Dhabi and Dh69.9 million to 78.6 million from Dubai," K.S. Manoj, vice-president of Pan-Eastern Trade and Exhibitors, told Gulf News.

Manoj said investment from the UAE will constitute for about five per cent of the total funds they require. Most of the investment will be pumped into the developments by Indian resident investors.

Speaking on the Indian housing market, Manoj said that it has "become stagnant". He said, "Because of the boom in the market, it will stay a bit bullish but the city markets in certain areas such as Kochi, Bangalore, Mumbai and Pune, are getting exhausted." People are moving to the outskirts due to the saturation, he said.

Manoj said builders are more prone to develop land in the rural markets as the prices are much lower. However, there will be a correction in prices in the six-month span since the rates are becoming stagnant, he said.

Availability

On the availability of land, he said, "The urban land ceiling act has been removed by the Indian government. So there is more land available."

The property show will move to Muscat, Malaysia in November and to Kuwait in December, Manoj said with about 40 to 50 per cent of the same builders and transparent.

There are currently 6,000 builders in India's organised housing market.