NRIs based in UAE investing in Indian real estate sector as rupee plummets

As the Indian Rupee’s slide against the US Dollar and the United Arab Emirates (UAE) Dirham continues, a large number of Non-Resident Indians (NRIs) are considering investing in the Indian realty sector.

Moreover, the confidence of NRI homebuyers has also been boosted by the new regulatory environment in India after the implementation of reforms.

The exchange value between the Indian Rupee and the UAE Dirham is benefitting buyers by approximately 10 per cent, implying that cost of acquisition for property in India is lower for NRIs based in the UAE.

Housing sales have witnessed a jump of more than five per cent in the first half of 2018 as against the same period in 2017. Photo courtesy: Wikimedia
Housing sales have witnessed a jump of more than five per cent in the first half of 2018 as against the same period in 2017. Photo courtesy: Wikimedia

The uptick in the market is revealed through Anarock data which says that the new launch supply across the top seven Indian cities in the first half year of 2018 has increased by nearly 10 per cent as against the corresponding period in 2017.

In addition to this, housing sales have also witnessed a jump of more than five per cent in the first half of 2018 as against the same period in 2017.

Game-changing policies like Real Estate Regulatory Act (RERA), demonetisation and GST have created a positive outlook for the Indian real estate sector.

To tap the sentiments of Indian buyers, developers are also launching projects at affordable prices brackets. For instance, Omkar Realtors and Developers has invited expressions of interest from NRIs for its new mixed-use township in Andheri East, Mumbai, called Omkar International District.