Real estate developers across India are participating in the Indian Property Show, a realty exhibition in Dubai, which presents a unique opportunity for NRIs to invest in the country post-demonetisation.
Experts opine that there are several benefits of demonetisation that will boost real-estate demand in the long run, with one major effect being the increased liquidity among banks. Such availability of funds will lead to lowering the rate of interest across different loans, encouraging the demand for real-estate.
The three-day exhibition plays host to top developers across India with thousands of various properties showcased ranging from apartments, villas, row houses, plots, to commercial and retail properties.
"For NRIs residing in the UAE, the Indian Property Show is more than just a real-estate exhibition," said R Srividya, General Manager Corporate Sales and Brand Engagement, Indian Property Show at Sumansa Exhibitions.
"It is a perfect opportunity to touch base with the latest happenings and updates on the real-estate front back home – particularly now that we are witnessing several important measures that have impacted the realty industry directly and indirectly”, he continued.
"For NRIs, these changes herald good omen since many builders are already adopting 100 per cent transparency policy and cheque payments, which obviously boosts the trust level between the two parties.”
"The implementation of Real Estate Regulation Act (RERA) rules, have also been instrumental in bringing professionalism, standardisation and transparency in real-estate sector. This, along with the recent wave of demonitisation has helped the Indian realty industry emerge more transparent and buyer-friendly," added Srividya.
Despite initial hiccups, experts foresee an uplift of the real-estate sector in the long-term. With RERA Bill in place in particular, NRI consumers will no longer have to deal with delayed possession, fluctuating prices and diversion of funds towards other projects – to name a few – instilling confidence in the Indian developers and the country's real-estate sector.
"The direct and most significant benefit of demonetisation is increased liquidity across the banks. Such availability of funds will lead to lowering the rate of interest across different loans which will in turn reduce EMI giving a boost to real-estate demand. We expect home loan rates to be down to approx. 7-8 per cent," said Dharmesh Shah, Vice President-Head Residential Sales and Marketing, Adani Realty.
Ashwinder Raj Singh, Chief Executive Officer-Residential Services, JLL India added: “The passing of RERA, the Benami Transactions Act and the demonetisation move will ensure the sector loses much of its historic taint. Only players who conduct their business with integrity are expected to survive.”
Expressing similar sentiments, Gautam Trehan, Founder and CEO, Seven Konsult, company dealing in super-luxury real estate, said, “With the implementation of RERA rules and passing of the GST Act, there will be more transparency in the property dealings. NRIs will no longer have to complain about delayed possessions and diversion of funds to other projects.”
