Realty bug bites NRIs, property turns hot investment

EXCITEMENT BUILDS UP: Developers and financiers are now tempting NRIs.

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London: After having lived outside of India for close to 40 years or even more, many NRIs are now joining a reverse flow into India, and investing in property back home.

Many are looking for retirement, or semi-retirement homes that may later tempt their children or grandchildren into connections with India. But it can also be good investment.

Nilesh and Sapna bought a house in New Town in Kolkata three years ago for Rs 45 lakh, and have seen the price go up to Rs 75 lakh.

“We saw a plan by and liked the work the West Bengal government was doing and now we are seeing the fruits growing on the trees,” says Nilesh.

Interest is growing among both the older NRIs, and the younger lot of professionals who have recently migrated from India.

Developers and financiers are now tempting NRIs with fancy new housing and they could not have picked a better time.

“They are seeing a slump in the UK market, which is not growing very well. A lot of my customers are getting out of the UK market, spreading their portfolio and investing into India. And investing into India big time. The pound is so strong you can do a lot of things in India,” says Meraj Alam

of Axiom Estates.

The new signs of interest follow an offer of new housing that wasn't around before.

“The interest has always been there. I just think that now we are able to serve that interest. Because provision of finance, is easier, the developers are willing to come, they are better able to exhibit their properties to the NRI community,” says Arijit Sanyal of HDFC.

Now the interest is attracting property developers and financiers from the wider London market as well.

Says MD, Navyroof.com, Andrew Fassnidge, “Currently, there are huge potential investments. If we look at investment banks, Meryll Lynch has increased 7 per cent.”