A weakening rupee is not normally news that the average public looks forward to hearing. However even with this rather dark cloud there is a silver lining. For the significant numbers of Indians who earn in a foreign currency, the slumping rupee offsets the sorrow of living and working in a land far away from home. Data across the country shows that over the last year or so, the price increase in the property market has been slowing down. This makes for a double benefit for someone looking to invest a portion of their savings in property. Now they can buy a property in India at a far cheaper price and at considerably lower installments. In the last month the dip in the rupee against dollar valuation broke records when it hit a low of Rs 57 to the dollar. In practical terms, this meant that for every thousand dollars an NRI had at his or her disposal, there was an additional income of ten thousand rupees compared to earlier times.
This is now starting to reflect in the property investment data that is coming in from the market in India. During the time when realtors in India are facing slow growth, they are able to see some heart- warming numbers in the number of NRI investors. The devaluation has been a spur for Indian residents abroad to invest, the Middle East in particular.
The relatively slow market has opened up attractive investment opportunities at the bargain rates and in previously expensive locations. Property investment is now viewed as the best bet for the NRI. It is the safest investment, has an appreciating tag attached to it and it can fetch monthly returns. It is a win-win situation for the investor as well as the developer.
At property shows in Dubai the segment of NRIs opting for a loan to conduct purchases have also risen in numbers. Wanting to utilize the opportunities in the current market, the real estate trade shows and exhibitions in Dubai have seen a surge in attendance.
With the relaxation of financial and legal restriction on buying property in India for the NRIs, they are free to buy any number of properties in India, any where they want. While the government has removed and relaxed most of the restrictions on land purchase, the necessary fail safes still exist. Agricultural lands have been exempt from direct purchase or gifts.
With the economy needing a boost and rupee showing signs of a slow recovery, the strong trend in buying by the NRIs may continue for some time to come. So all in all, this is definitely an apt time to put that spare money to good use.
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