With Christmas and the New Year less than a month away, the Bangalore property market has received an added boost in the form of interest from Non-Resident Indians (NRIs).
According to sources, NRIs are estimated to contribute at least five to six per cent of the total Bangalore real estate market during this season, amounting to an estimated Rs 3,000 crore.
Suresh Hari, the secretary of the Confederation of Real Estate Developers of India-Bangalore (Credai), explained that many queries for salable properties come from NRIs in the United States and the United Kingdom. “NRIs may have an eye on Bangalore market but it is during the holiday season that people come to either finalise a deal or make an initial payment,” he said.
But on the question of why purchases of property by NRIs spike in December can be attributed to the holiday season in Europe and North America. “Many offices in the US and UK are closed during the last week of December,” Hari said. “Many NRIs accumulate holidays over a couple of years and come home during the holiday season and use the opportunity to purchase land, an apartment or a house.”
Real-estate analyst Srinivas Reddy concurs that NRI interest in Bangalore increases during the November-January season. “NRI’s believe Bangalore is a better option compared to other metros because the market is stable and balanced,” he said. “Prices don’t rise or fall sharply. The cosmopolitan character of the city is an incentive.”
Property shows which are held abroad have been a critical aid to Bangalore’s real-estate market. Many such shows, held in the Emirates, showcase real-estate in Bangalore, allowing interested buyers to collect details of prices, sizes and locations of land, so as to better be able to negotiate with developers.
Reddy added that most property purchases in Bangalore run the gamut between Rs 75 lakh to Rs 1.5 crore, while high-net worth individuals can spend anywhere between Rs 1.5 crore upto Rs 10 crore. In keeping with the real-estate trend in Bangalore, most purchases are made in south and east Bangalore.