It is more of bad news than good news for the developers as far as their efforts to entice the NRIs is concerned. The good news is that the outlook of the expat Indians towards the Indian real estate is changing; the recent policy reforms have made them more optimistic about the property market back home. But the bad news is that they are yet not ready to commit for property purchase in India.
Browsing: Survey
Employees are the backbone of any given business. They are the reasons why your business is successful or not. The productivity of an enterprise is directly proportional to the happiness index of its manpower. But what would you call a business where the vast universe of the workforce is pretty disillusioned and the business is yet not ready to address it? Welcome to the work culture of Indian real estate!
This may not be music to the ears of the developers who are hoping against the hope that the recent policy changes & reforms would bring the homebuyers back to the market. But the ground reality is that for a vast majority of the Indian homebuyers the measures like demonetization, GST, RERA or Benami Transaction Act are more for academic discussions than making any tangible changes for them on ground.
The choice of high profile NRIs in terms of real estate investment is more of emotional urge to come back to the hometown than the locations that are attractive as job magnets. No wonder, more than three-fourth of NRIs, as many as 78 per cent, wish to invest in their hometown.
A Track2Realty pan-India survey finds that despite of high spending pattern of North Indians in general and Delhi-NCR in particular their investment and aspiration for a second home is far less than the citizens of Mumbai & Pune.
Dissatisfaction among the homebuyers was noticed at every level, and every set of buyers had their own set of grievances. Of course, the level & extent of dissatisfaction is different in different phases of house purchase and ownership.
A perception has gained ground that the NRIs (Non Resident Indians) losing jobs in the US and other parts of the world have no choice but to land back home and invest in India’s housing market. The ground reality, however, is that these expat Indians don’t think this is a logical conclusion, finds a global survey by Track2Realty.
As per the data available with Track2Realty, the Malayalese and other South Indian NRIs are nowadays investing into Kochi and Coimbatore than Bangalore or Chennai. Gujarati NRIs are investing into Ahmedabad and Vadodara than Mumbai. Mumbai-born NRIs are investing into Pune and Nashik than Mumbai. North Indian NRIs are investing into Noida and Ghaziabad than Gurgaon. One common thread into all these investments is scaling down of property segment – from ultra luxury to mid-segment and premium housing.
In terms of pure economics renting out a property as against buying it may sound to be logical due to poor rental yield across India, the market reality beyond fiscal prudence is not that simple. In most of the Indian cities the tenants have to pass through a number of uncomfortable questions ranging from food habits to personal lifestyle choice before they can get a rental property for living. The process itself is very tedious and prone to leave grey zones.
Bottom Line: Track2Realty conducts a pan-India survey to find what…