Smart Investment Opportunity for NRI in Indian Real Estate

The current sluggishness in the property market has left many reeling in its wake. In this troubled time the usually robust real estate sector has also seen a slowdown. Here lies the opportunity for NRI investors to strike gold; as exactly the factors which have caused a slowdown in the real estate sector work in favour of medium-to-high net worth individuals.

“Recession is the time when the real investors make money. There is a very simple logic to it, when the whole world can’t afford to buy the best deal you step in and get a better deal.”-Aashil Patel (Regional Director for RE/MAX Mumbai-Maharashtra-Gujarat)

The rupee constantly depreciating against the dollar has brought bad news for the markets but on the upside this means that an NRI will pay on an average 15% lesser for the same property as opposed to him investing in property a year ago. If we compare the average USD rate in Jan 2011 at Rs. 45.39 to that of Jan 2012 at Rs. 53.07 we can see a huge gap of nearly 8 rupees.

Furthermore, housing loans have upped their interest rates to 11%, making it even more difficult for consumers to buy real estate. Even the commercial sector has seen a slowdown. In this scenario real estate developers and sellers are both bordering on desperation to sell, even at discounted rates.  At such a time a smart investor has the upper hand to negotiate for the best rate.

                                                                   2011                2012

Price of property (Rs.)                        2,00,00,000     2,00,00,000

Developer’s discount                               -                       20%

Price after discount (Rs.)                     2,00,00,000     1,60,00,000

Price in USD ($)                                      440,626              301,489

Average savings in USD ($)                      -                       139,137

On the other hand India, as an emerging economy is being looked at as a favourable destination to enter. Compared to other countries India has been less hit by the slowdown and has a burgeoning market for consumers which will attract investors from other sectors to enter India. One of the key requirements for any entrant will be real estate. Thus in the long run property prices will appreciate and the investor in real estate stands to gain.

Looking at these recent developments it is the ideal time to invest in real estate in India for an NRI. Looking at the table above it is clear that an investor stands to gain at least 30% at the outset. Further, when he sells the property its value will have appreciated. The slowdown is here, and so it is now time for the true investor to get a better deal or the best deal possible. RE/MAX MGM is an Indian real estate company which can help NRI investors and business franchise owners to take advantage of the knowledge of a strong network of local brokers to capitalize on discounts in real estate prices offered by property developers.

Article Source: http://www.compensationsecrets.co.uk/