NRI interest in domestic real estate spikes as many return home amid coronavirus: Report

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Real estate companies are seeing an increase in the number of queries for purchases from non-resident Indians (NRIs), especially from those based in the Middle-East.

The increase in queries may be linked to NRIs wanting to return to India amid rising coronavirus cases in the Gulf Cooperation Council (GCC) region and as job losses there continue to mount, Business Standard reported.

In fact, of the 150,000 Indians based in the United Arab Emirates (UAE), who have registered to be repatriated to India, 25 percent said job loss was the reason for return. Experts feel the regions’ oil-based economies suffer as they battle the economic woes and the COVID-19 crisis.

“The recent global uncertainty has increased their (returning workforce’s) faith in domestic markets. Purchases and enquiries from GCC buyers, which were negligible earlier, are currently at about 10-15 per cent of the overall,” Kamal Khetan, CMD of Mumbai-based Sunteck Realty told the paper.

Mumbai’s Hiranandani has also noted the increase in response from GCC-based NRIs, adding that these clients preferred integrated townships, which offer facilities similar to GCC standards.

Bengaluru’s Puravankara has sold 50 units to GCC buyers in two months and is expecting a further uptick in demand for scheduled e-launches, company MD Ashish R Puravankara said.

Brigade Enterprises, another Bengaluru-based developer saw sales worth Rs 15 crore from GCC buyers till March-end. The company expects these buyers to grow by 20 percent in FY21 and has sweetened the deal by offering e-shopping vouchers and low cancellation charges, Subhorov Roy, chief sales officer residential, Brigade Enterprises told BS.

Oberoi Realty has seen a 30 percent spike in enquiries, mostly from NRIs and many of these from the gulf region, CMD Vikas Oberoi said.

It is not just the developers, but consultants are also seeing an associated rise in business. Anuj Puri, chairman of Anarock Property Consultants said at least 35 percent of current business is from NRIs, adding: “The favourable exchange rate on the back of the sliding rupee against the dollar has, of course, improved affordability for them, but that is just one side of the story. Many NRIs are in the process of returning to India and want to secure a home here.”