With the stock markets down in India, the realty market here offers a reliable investment avenue.
There are three reasons why NRIs invest in India — they remit money for family expenses or investments or for maintaining their bank accounts and investments here.
According to RBI records, NRIs’ annualised remittances to India have grown from $26 billion in 2006 to $40 billion in October 2007. A big percentage of this is going into buying property here.
Developers say NRIs now account for 15-30% of sales in branded developments as against 5-15% three years ago. Properties in Mumbai, Ahmedabad and Goa are attracting most of the buyers but enquiries are coming for other cities too.
And it’s not just biggies such as Shapoorji Pallonji, Unitech, DLF, Hiranandanis, K Raheja that are benefiting from the NRI wave but also middle-level players such as Rustomjee and others.
Aniruddha Joshi, executive director of real estate investment company Hirco Group, says India as an investment destination has gained prominence over the last 10 years. “Real estate is a key asset class for any investor looking at India,” he adds.