India sees spike in real estate demand as rupee falls

Indian real estate market is seeing a sudden spike in demand by NRIs (non-resident Indians) in the recent weeks, triggered by a 10-12 percent fall in rupee exchange value against US dollar. This translates into a corresponding drop in property prices for NRI buyers, according to industry players and real estate services and research firms. The slackness in the Indian residential real estate market in many Indian cities has given added advantage to NRI investors who can drive hard bargains to further sweeten their purchase deals. 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.