NRIS expresses interest in buying property in Mumbai

Last year, the Indian economy moved at a slow pace. Although the appreciation in the value of the dollar may have been a concern for many, builders certainly weren’t complaining.

According to a report in one of the country’s leading newspapers, since then the rupee has depreciated 12% against the dollar; Indians working abroad have expressed great interest in buying property in Mumbai.

The fall of the rupee has made it possible for an average NRI to invest in some of the premium locations in the metropolitan area. A flat that could be bought for $1 million in May 2013 cost almost $900,000 in July 2013. Although the savings are significant, the real estate trend is more towards properties ranging from Rs 1-3 crores rather than houses. deluxe.

Growth in interest from NRI investors

The NRI community is among the top five investors in the country and makes up nearly 15% of the city’s residential investors. Out of total annual apartment sales of Rs 50,000 crore, NRI investors contribute approximately Rs 8,000 crore. Mumbai continues to be a community darling as the city’s real estate offers investor-friendly options.

This, in turn, has led to a sharp increase in foreign investors. Other factors that have contributed to this increase include higher economic growth, continued globalization, infrastructure development, positive demographics, rising income levels, increased demand for social infrastructure, and proximity to places of employment. commercial work. A large majority of this population is interested in investing in housing options that will generate immediate rental income and appreciate in the near future.

Popular areas for investment

While nearly every location in and around the nation’s financial capital has a wide margin of appreciation, there are three areas in particular that NRIs prefer. These include properties in Thane, Kandivali East-Mumbai and Kharghar-Navi Mumbai.

Over the past three years, the Ghodbunder road area in Thane has seen a 55% appreciation in capital values, while rental income has increased by 33%. Due to Kandivali East’s proximity to the Western Express, the capital value of flats increased by 42% and rental values ​​soared by 25% during the same period. The third favorite residential destination, Kharghar has seen a 37% increase in its capital value and a 23% increase in rental values ​​in the same year.

Whereas a 1BHK unit costing Rs 45-60 lakhs in Thane would bring in a monthly income of Rs 8,000-12,000; the same would cost around Rs 35-90 lakhs in Kandivali East and its rental value would be around Rs 8,500-20,000. In Kharghar, a 1 BHK flat can be bought for Rs 35-55 lakhs and would generate a rent of Rs 6,500-10,000.

Mumbai is the most popular choice among Indian investors from the US and the United Arab Emirates, while Bangalore comes in second. Pune and Chennai together occupy the third position; closely followed by Delhi, Cochin, Gurgaon and Hyderabad. Most of them prefer residential apartments compared to villas or commercial properties.