The slow growth rates in developed countries throughout the world together with the current slide of the rupee against the dollar has made the situation prime for NRIs to do investments in the India, such as Bangalore.
This was echoed by Indiaproperty’s Vice President and Business Head, Ganesh Vasudevan. He said, “There couldn’t be a better time for high net worth individuals (HNIs) to invest here. Purely based on the rupee-dollar fluctuation, the value of property has decreased by up to 8 to 10 percent effectively. Those looking at investing back in India can make use of the ten percent depreciation in the value of the rupee to build their investment portfolio.”
Bangalore has remained amongst the top investment destinations for NRIs and those living the abroad. According to Avinash Rao, the Regional Director – South for Knight Frank India Pvt Ltd, “The real or actual impact of the rupee-dollar crisis cannot be assessed in the short term, hence it will be some time before the real impact starts showing up.”
He adds that over the years, the city has become the destination of choice for NRIs and there could be quite a number of reasons that this is the case but some of the enticements include product offerings and pricing. There is a different sales pitch for every requirement. This includes offers for premium and affordable villas, premium apartments and cost efficient town houses. Pricing is another factor and the city offers variegated price options for the purchasers. Overall, the prices are stable and the projected returns are quite good for the investments.
Bangalore has been likened to the Silicon Valley and has become a hub for technology firms as well as skilled workers in the area. There has also been a significant number of Indians returning to the country from abroad. The activity has become popular in all areas of the city, each area having high demand for areas where technology companies and other services oriented firms have set up shop.
Rao adds, “Factors driving demand in the city include the end-users working with the services and manufacturing companies, investors from other cities and NRIs. While supply infusion in the market last year was about 20,000 residential units, almost 18,000 units were absorbed. Areas like Sarjapur Road, Outer Ring Road, Bannerghatta Road, Kanakapura Road, Old Madras Road, Yelahanka and Bellary Road accounted for most of the upcoming units. In 2012, the estimated supply infusion is about 22,000 residential units.”
He further explains, “Importantly, there are factors like developers developing new projects clearly targeting the NRI segment. These projects offer facilities and amenities similar to the ones NRIs are familiar with abroad and hence they don’t have to make significant changes in their lifestyles. Availability, affordability and good standard of living are the key factors driving demand.”