Time for homecoming for NRIs

By Sanjay Suri, CNBC-TV18

After living abroad for 30-40 years, many NRIs are now joining a reverse flow into India, and investing in property back home. Many are looking for retirement or semi-retirement homes that may later tempt their children or grandchildren into connections with India. But it can also be good investment.

Nilesh and Sapna bought a house in a new town in Kolkata three years back for Rs 45 lakhs, and have seen the price go up to Rs 75 lakhs. They said, "We saw a plan and liked the work the West Bengal government was doing. Now, we are seeing the fruits growing on the trees."

Interest is growing among both the older NRIs and the younger lot of professionals who have recently migrated from India.

Developers and financiers are now tempting NRIs with fancy new housing and they could not have picked a better time. Meraj Alam of Axiom Estates said, "They are seeing a slump in the UK market, which is not growing very well. A lot of my customers are getting out of the UK market, spreading their portfolio and investing into India big time."

The new signs of interest follow an offer of new housing that wasn't around before. Arijit Sanyal of HDFC said, "The interest has always been there. I just think that now we are able to serve that interest. Because provision of finance is easier, developers are willing to come and are better able to exhibit their properties to the NRI community."

Now the interest is attracting property developers and financiers from the wider London market as well. Andrew Fassnidge, MD, Navyroof.com said, "Currently there are huge potential investments. If we see investment banks, Meryll Lynch has increased 7%."

Even fancy new housing options have come. NRI's think its time for homecoming now.