Non-resident Indians (NRIs) looking to buy a house or invest in real estate will be hard-pressed to choose from among hundreds of options when the Indian Property Show opens tomorrow at the Dubai World Trade Centre. According to a survey by the show’s organisers, 51 per cent of NRIs in the UAE plan to purchase property within the year, with around 41 per cent looking to acquire a real estate investment asset.
To help NRIs choose the right property, we asked realty experts for tips when buying property in India.
Property selection
The choice of city should depend on three factors: the city’s growth potential, infrastructure development in the past three to five years and social security, says Indrani Shekar, assistant vice-president, Gulf office, Brigade Enterprises. Furthermore, the community should cater to the buyer’s exact requirements.
“If you want to come back and have an abode with your family, you should choose something that resonates with the lifestyle you have been accustomed to,” says Shekar, adding that a property close to the airport is ideal for NRIs. “Also, a newly launched, under-construction property offers the benefit of a relaxed payment schedule and appreciation.”
Market dynamics
Be familiar with the local market dynamics, as well as which builders and property consultants are reliable and trustworthy, says Anuj Puri, chairman of Anarock Property Consultants.
“Study the pricing trends for at least the last five years to have a good idea of the appreciation and rental income,” says Puri. “Also, work with a reputed property consultant. For optimal growth, it is best to invest in growth corridors rather than established core areas, which are more expensive and have less potential for appreciation.”
Due diligence
Quality, reliability and trust are three important things to bear in mind when deciding on real estate, says Ashish R. Puravankara, managing director of Puravankara Limited.
“With Rera in place, gathering information on any project is easy, thus customers should do thorough due diligence. Word of mouth is another great way to gather data; family and friends are always a treasure trove of information.”
Indian market USP
India has become an attractive investment destination because of the growing popularity of the Indian leadership and the country’s improved foreign relations, says Rahul Maroo, senior vice-president of Omkar Realtors & Developers.
“The present government is being seen as a reformist, having taken many decisions to make India business friendly. Moody’s also upgraded India’s Sovereign rating to Baa2 from Baa3 after a long haul of 13 years. India today is growing at 6 per cent annually. With all this in place, India remains a hot destination for investment.”
Rent-friendly areas
For investors, look for locations where property is easy to rent out, says Atharv Parekh, associate manager of Adani Group.
“It will help recover investments in the short term,” says Parekh. “Today, it’s not only metro cities like Mumbai, Delhi, Chennai and Kolkata, but also IT-driven cities like Banglore, Hyderabad and Pune that have good options, promising higher returns. Tier-two and tier-three cities like Ahmedabad, Surat, Jaipur, Indore, Vizag and Coimbatore also offer excellent opportunities for NRI investors.”
