NRIs make merry as value of Indian rupee depreciates

MANGALORE: Real estate may be reeling under pressure due to high interests and inflation in other parts of the country. However, in Mangalore it’s booming thanks to non-residential Indians (NRIs). They are making a beeline for investments following the appreciation of foreign currencies against Indian rupee.
PMA Razak, president, Mangalore Chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI), told TOI that the falling rupee value had made investment in real estate an attractive proposition for NRIs, especially in the Middle East.
Why the rush?
“Earlier to buy an Rs 50 lakh property, a person who works in Qatar had to spent Qatari Riyal (QAR) 4.34 lakh. Now, due to the depreciation of rupee; the same person needs to shell out only QAR 3.48 lakh. He can save nearly one lakh QAR,” said Razak. It’s the same for all Middle Eastern currencies like UAE Dirham, Saudi Riyal, Bahrain Dinar and Kuwaiti Dinar. Razak said, “In most firms in the city, about 80% of the bookings are done by NRIs these days.” According to him the trend is a typical scenario in Mangalore as in his company’s Bangalore branch, only 2% of the investors are NRIs. “Even in Kerala, where NRI population is high, it is 50:50 among NRI and domestic buyers,” he said.
Property Infratech India Private Limited MD, Rohan Monteiro said that the response was even among NRIs and domestic buyers for his properties. “But there have been lot of inquiries from NRIs recently,’’ he added. Sanath Kumar Shetty, one of the promoters of Mangalore’s first skyscraper, Planet SKS, admits that the properties have become 20% cheaper for NRIs and they have been getting quite a lot of enquiries of late after rupee devaluation. “The per sq ft cost has come down nearly by Rs 800 for NRIs making investment in real estate more attractive,’’ he added.