Weak rupee sees Dubai NRIs buy high value properties

Rich non-resident Indians (NRIs) in United Arab Emirates (UAE) have begun to leverage the decline in the value of rupee to buy properties in India irrespective of the price stretching up to Rs 1 crore or more, according to a survey.

As per the survey conducted by Sumansa Exhibitions in Dubai, organisers of Indian Property Show, as the weak rupee gives more power to dirham currency as much as 89 per cent of NRIs in the UAE are planning to leverage the power of their additional income by investing in properties in India.

The current sluggish markets as well as a weakening rupee enables NRIs in UAE to buy properties at a relatively cheaper rate in India, the survey said, pointing out that 26.7 per cent NRIs are looking to buy properties as additional investment, a sharp rise of 6 per cent in one year.

NRIs in the UAE mostly prefer investing in property as it is one of the safest option and gives good return as the capital value of any property appreciates, says Sumansa Exhibition CEO Sunil Jaiswal. The survey also reveals that Mumbai, Bangalore and Delhi are among top five destinations. This shows that they are looking for cities which will give them good returns, he said.

Another property consultant said over the last year, his company has witnessed demand for properties higher in value as NRIs want to cash in on this situation and invest more to get better returns in future.  The trend is to invest in additional property in metro cities and enjoy the capital appreciation in 4-5 years time, he said.

An Indiabulls representative said with rupee depreciating in the past couple of years, there has been a good amount of remittance going back to India. Additionally, bank deposits have also started yielding good returns making that as a good investment alternative.

For NRIs, a reputed developer with good track record, quality and possible price appreciation is an important factor, Sahara Prime City’s Sunil D’Costa said.