Rupee slide: Should NRIs buy houses in India now?

Rupee slide Should NRIs buy houses in India now

With the rupee touching all time lows against the dollar, it appears to be a great time for Non Resident Indians (NRIs) to remit funds to India for investment. And for most NRIs, the preferred asset class continues to be real estate. But with the India story looking a little bleak, is property a good investment right now?
So if you are ready to take that challenging road, here are a few tips to help you along the way.

To know more: Rupee slide: Should NRIs buy houses in India now?

Mid-Day: The Dollar Effect

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India offers a wide range of real estate options for various budgets, with improved quality and features of properties. Currently the larger cities like Mumbai are witnessing a slump in sales forcing the developers to offer good deals. “There is a possibility of two-fold benefits for the NRI investors – the current weakening of Indian rupee is expected to be short-lived phenomenon, and once the Rupee starts appreciating, the investor will get more dollars for the same investment in rupees. Secondly over the mid-long terms (three-five years), property prices in India will appreciate considerably, thus giving good returns to investments,” said Mr. Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India.

TOI: Better now than never

From the second quarter of 2009 to the same quarter in 2013, residential real estate prices in Mumbai have increased by 66 per cent.

The past couple of years saw the city expanding towards the suburbs due to the soaring real estate prices, space crunch and increase in demand for housing. “For home buyers, turning to the suburbs of Mumbai and upcoming areas like Virar and Thane, is a more affordable bet. One should currently look at owning a house in the suburbs. Owing to improved infrastructure, prices are expected to appreciate further here in the long term,” says Percy Chowdhry, Director, Rustomjee

Rustomjee - Better now than never - Times Property

Indian Express: Realty registrations in Mumbai increase 25% in Jan, most in 3 yrs

Rustomjee Athena, at the 127 acre township in Thane - Rustomjee Urbania

Rustomjee Athena, at the 127 acre township in Thane – Rustomjee Urbania

In a good start to 2013, Mumbai’s real estate market saw its highest January sales registrations compared with January 2012 and 2011, indicating some pick-up in sales of houses, which remained sluggish over the last two years.

According to real estate industry experts, the December registration numbers are traditionally higher as customers flock the market to close their transactions to avoid paying higher stamp duty and registrations charges, which get revised every year in January with changes in Ready Reckoner rates announced by the state government.

Read more:  Realty registrations in Mumbai increase 25% in Jan, most in 3 years

Livemint.com: Budget’s real estate sops aimed mostly at affordable housing

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Real estate got a shot in the arm from finance minister P. Chidambaram in the budget for the next financial year, but it was mostly limited to affordable housing. He proposed a Rs.2.5 lakh deduction on the total taxable income on home loans less than Rs.25 lakh.

The deduction is applicable on loans from banks and non-banking financial companies (NBFCs). Currently, the deduction on interest payment of home loans is Rs.1 lakh, irrespective of the amount. With this proposal, a Rs.25 lakh home loan will get a total tax deduction of Rs.2.5 lakh on interest payments.

Property analysts tracking the real estate sector said that this would offer a welcome impetus to budget housing, first-time home buyers and to some extent, boost demand in smaller cities and the distant suburbs in metros.

Boman Rustom Irani, chairman and managing director of Rustomjee Group, said the two disappointments for the sector in the budget are that the real estate regulator, aimed at ensuring transparency, wasn’t announced and the sector hasn’t been given infrastructure status.

Read more: Budget’s real estate sops aimed mostly at affordable housing

DNA Property: ‘MCHI-CREDAI hai to bharosa hai’

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Boman Rustom Irani, CMD Rustomjee and Secretary MCHI – CREDAI, explains why this year’s property 2012 exhibition is a definitive home-buyer destination.

MCHI CREDAI works towards ensuring peace of mind through having all it members sign a code of conduct to follow the best practices thereby assuring the buyer of transparency in transactions. In this exhibition all properties that are sold would have the necessary approvals that are required.