The rupee has fallen more than 9% against the US dollar since January. Oil imports, amid rising crude oil prices, are leading to an increased demand for the dollar which, in turn, is making the rupee weaker. The other significant reason for weakness in the rupee is the rise in US bond yields which has made the dollar attractive. The depressed market conditions in Indian residential real estate sector have led to a price correction, which also acts as an added attraction for NRI interests. According to industry players, the recent demand pick up is led mostly by NRIs from the Middle East, who have started investing in Indian residential properties, especially in Tier 2 projects where prices are more affordable. The exchange value of UAE dirham has also crossed the 20 mark recently vis-a-vis Indian rupee. The demand surge, however, is mainly being witnessed in select markets such as Bangalore, Hyderabad and select pockets of Delhi/NCR and Mumbai such as Navi Mumbai, and also limited to RERA compliant (Real Estate Regulation and Development Act) projects being implemented by reputed builders. Officials at some of the leading developers said they observed bookings by NRI buyers in multiple projects in Tier 2 residential projects. “Affordability of prices and lower monthly payouts make these projects highly attractive to NRI investors, especially from the Middle East. They, however, are booking only in RERA compliant projects,” officials say. The demand surge, however, is mainly being witnessed in select markets such as Bangalore, Hyderabad and select pockets of Delhi/NCR and Mumbai such as Navi Mumbai, and also limited to RERA compliant (Real Estate Regulation and Development Act) projects being implemented by reputed builders.
