Last year, the Indian economy moved at a slow pace. Although the appreciation in the value of the dollar may have been a matter of concern for many, the builders certainly weren’t complaining.
According to a report in one of the country’s leading newspapers, the rupee has since depreciated by 12% against the dollar; Indians working abroad have expressed great interest in buying property in Mumbai.
The falling rupee has made it possible for an average NRI to invest in some of the premium locations in the metro area. A flat that could be bought for $1 million in May 2013 cost almost $900,000 in July 2013. Although the savings are significant, the real estate trend is leaning more towards properties ranging from Rs 1 to 3 million rather than houses. deluxe.
Growth in interest from NRI investors
The NRI community is among the top five investors in the country, making up nearly 15% of the city’s residential investors. Out of the total annual apartment sales of Rs 50,000 crore, NRI investors contribute about Rs 8,000 crore. Mumbai continues to be a community darling as the city’s real estate offers investor-friendly options.
This, in turn, has led to a sharp increase in foreign investors. Other factors that have contributed to this increase include higher economic growth, continued globalization, infrastructure development, positive demographics, rising income levels, increased demand for social infrastructure, and proximity to shopping spaces. commercial work. A large majority of this population is interested in investing in housing options that will generate immediate rental income and appreciate in the near future.
Popular areas for investment
Although almost every locality in and around the nation’s financial capital has a wide margin of appreciation, there are three areas in particular that NRIs prefer. These include properties in Thane, Kandivali East-Mumbai and Kharghar-Navi Mumbai.
In the last three years, the Ghodbunder road area in Thane has seen a 55% appreciation in capital values, while rental income has increased by 33%. Due to Kandivali East’s proximity to the Western Express Highway, flats’ equity values increased 42% and rental values soared 25% over the same period. The third favorite residential destination, Kharghar has seen a 37% increase in its capital value and a 23% increase in rental values in the same year.
While a 1BHK unit costing between Rs 45-60 lakhs in Thane would generate a monthly income of Rs 8,000-12,000; the same would cost around Rs 35-90 lakhs in Kandivali East and its rental value would be about Rs 8,500-20,000. In Kharghar, a BHK 1 flat can be bought for Rs 35-55 lakhs and would generate a rent of Rs 6,500-10,000.
Mumbai is the most popular choice among Indian investors from the US and the United Arab Emirates, while Bangalore ranks second. Pune and Chennai together occupy the third position; closely followed by Delhi, Cochin, Gurgaon and Hyderabad. Most of them prefer residential apartments compared to villas or commercial properties.