With some of India’s best-known builders showcasing their developments in Abu Dhabi over the weekend, expert Pradeep Pinto says now is the ideal time to invest in India’s property market. On 23rd and 24th October, the Emirates Palace in Abu Dhabi hosted the fifth Adsync Advertising India Property Fest (IPF), where many of India’s leading construction firms unveiled a wide variety of property across India that has been carefully developed to suit all budgets. For the Indian community living in the United Arab Emirates (UAE) this was the perfect opportunity to find investment opportunities; in addition, it was also ideal for foreign investors from a little further afield.
Chief executive officer of Adsync Advertising’s Middle East operations and organiser of the IPF, Mr Pinto, explained that prospects in India are gaining. Combined with lower borrowing costs, the declining Indian rupee value and a large number of affordable housing projects across the country, current investment in the nation is very attractive. Market signs also suggest that there is a rising level of demand from potential consumers looking into residential new builds.
One of the leading reasons for the recent change in investor stance is the fact that the Indian rupee has seen a steady decline, making residential property in the nation even more affordable. With a favourable exchange rate, investors now have better purchasing power with which to buy residences; in addition, while the rupee remains low in value, the property market has stabilised, helping investors to remain confident that any purchase will not suddenly and significantly decline in value.
There is also one huge advantage for non-resident Indians (NRIs) in that there is easy access to home loans. These hassle-free mortgages for Indian property can be utilised by NRIs just as any resident Indian and mean that up to 80% of the property value can be accessed via a loan, with banks having become far more flexible over the past few months. This has helped the property market to grow and has made buying residential property far more attainable. Taking a cue from the low interest rate outlook of the RBI, many leading agencies in India have curtailed lending rates to help stimulate growth. This makes borrowing more affordable and less risky to potential investors.
There are many regions across India that are noting increased residential growth. The cities of Bengaluru and Mumbai, for example, have become major hotspots, as has the National Capital Region. With real estate investments in these areas becoming popular, experts are forecasting returns of between 9% and 19% over the coming five years. This means those buying homes as a pure investment stand to do well when it comes to future sales; meanwhile, for those wanting to invest in property for the long term, experts suggest looking further afield than just the metros. Tier II cities such as Ahmedabad and Lucknow are set to grow exponentially in the coming years and will yield good returns as a result.