With the recurring slide of the rupee against the US dollar becoming a cause of concern for many, but Aanya Real Estate Pvt Ltd, a real estate arm under Soham World Group, Soham World sees tremendous opportunities for the non-resident Indians to invest in India’s realty industry
Aanya Real Estate Pvt Limited, a real estate arm under Soham World Group, is one of Mumbai’s premier real estate companies
Mumbai-based Aanya Real Estate Pvt Ltd, one of Mumbai’s premier realty company, has showcased a myriad of as many as 60 landmark projects in nearly four million sq ft, housing more than 4,500 families. “Ever since the rupee has depreciated, we have been receiving a steady response from NRI customers from Middle East, Singapore, United Kingdom and the United States. The demand from the NRI segment has increased by 25 to 30 per cent in the past few months,” says Deepak Vasandani, Co-Founder and Director of Aanya Real Estate Pvt Ltd
The 25 per cent fall of the rupee against the greenback in the past two years has resulted in the price of real estate falling by a corresponding 25 per cent in notional terms, assuming that the NRIs are paying in dollars. “If a residential unit was available for Rs 1 crore before the slide of the rupee, the same is now available for Rs 75 lakh for NRIs,” adds Vasandani
Non-resident Indians are amongst the top five investor communities in the region. With their natural affinity towards India, Tarun Hundalani, Co-Founder and Director, Aanya Real Estate Pvt Ltd, believes the present environment is very lucrative for overseas investors. “It offers them an opportunity to get maximum returns by investing a small sum through subvention scheme wherein a buyer has to pay just 15 to 20 per cent on booking and rest is payable on or after possession as the EMI starts only after possession is offered. With the Indian rupee depreciating, NRIs are in a better position to en-cash and may get an extra return or discount of 15-20 per cent just because of rupee depreciation,” he adds
Hundalani says the fact that property prices have witnessed a 42 per cent jump in the last four years has increased demand from NRIs. “The sharp depreciation in rupee value in comparison to the dollar, pound and other global currencies in the last one year has rejuvenated the Indian real estate market, which saw a fall in global demand after the economic crisis of 2008,” he pointed out
According to Vasandani, the demand has also been triggered by the rise in the number of senior NRIs returning to retire in India after having spent their professional lives abroad. This is especially true in cities like Mumbai and Nagpur, where investment in real estate has seen a rising demand from NRIs in the retirement homes segment. “The easing of policy regulations by the Reserve Bank of India (RBI) and financial institutions is a large driver of this demand,” he adds
The Indian real estate market has always given lucrative returns to investors, with most locations witnessing a growth of 40-60 per cent over the last three years. Taking about how the rupee depreciation has increased NRI interest, Vasandani says, “If we consider the May and June 2013 period, the rupee has depreciated by over 12 per cent against the US dollar
Assuming a conservative return of 10 per cent from an investment in Indian real estate in the short-term, the investor could expect returns of over 20 percent as opposed to an investment made in the pre-May period. With such odds in terms of numbers as well as the plethora of investment opportunities presented by reputed builders across markets, we believe the market will witness an inflow of capital from the NRI community,” said Vasandani
