NRI Living In Europe? Now Buy Property In India For Less

If you are a non-resident Indian (NRI) living in Europe, here is some news for you. You can buy a Rs 75-lakh property in India for Rs 70 lakh only. A straight discount of eight per cent and this is applicable on buying any property in India. Wondering how you can avail of this offer?

Here's what you need to know:

Why does this apply to European NRIs only?

The answer to the first question is that nothing specific needs to be done. It is automatically applied on European NRIs as the foreign exchange rate for Euro against Indian National Rupee (INR) has gone up from Rs 70 to Rs 76 in the past six months. This eight to ten per cent appreciation in the value of Euro against Indian Rupee has opened windows of opportunities for European NRIs to buy properties in India.

Also read: Why Realty Is The Best Bet For NRIs

But that's not the only reason

Thanks to the Real Estate Law, the property market in India is now on a fast-track and is expected to become an organised sector just like the financial services and insurance.

It won't be an over-supply market anymore. The number of new project launches is going down and the supply side will soon find its equilibrium with the demand side. That's pretty evident from recent industry research reports that reveal at least 20 per cent reduction in the number of new project launches in the first-half of the year. Is that a good sign?

What does that mean for NRI property buyers?

The emerging scenario indicates that going forward developers won't be able to launch any project without complying with the stringent requirements of the RERA. Unorganised players will either fall in line and follow the guidelines or be out of business. Fly-by-night won't have a chance to enter this market at all.

Subsequently, the market will have limited supply of properties.

If an NRI or any Indian resident, for that matter buy property today, the investment is most likely to generate superior returns over a period of three to five years.

Are you still not able to trust developers?

As the real estate market in India is in a state of doldrums and several small to large-size developers are facing severe legal actions and public wrath, property buyers have an opportunity to make a fruitful investment in the resale and ready-to-move in markets.

Nearly all the issues are with under-construction properties wherein real estate developers are not able to take their projects through to possession stage. So, steer clear of under-construction properties for now. There is no such risk with properties that are already open for possession.

Also read: Common Problems Faced By NRI Investors

Way forward

Until a few months ago, a flood of new project launches had created a situation of oversupply in the market influencing demand for resale and ready-to-move-in properties. Most property buyers used to prefer under-construction properties as they were supposed to offer better returns and attractive payment plans. These factors are no longer feasible vis-à-vis the huge risk that is attached to such investments.

At present, nearly all the property markets in India have a considerable availability of quality resale and ready-to-move-in properties. All you need is to plan your next move and take thoughtful action. EUR-INR exchange rates are already in your favour.

Also read: The Death Of Pre-Launch Properties In India