(MENAFN - Khaleej Times) Pune, Bangalore, Mumbai and Hyderabad are the favourite cities for investments into the real estate sector by UAE-based non-resident Indians as they offer good prospects in terms of rental returns and price appreciation, developers said during Indian Real Estate Show 2018 on Saturday.
"If you look at the price index and capital appreciation, Bangalore and Pune have been highly-promising cities. In terms of demand also, both are seeing good response from NRIs because of the growth potential in terms of job prospects. This demand is not only from the UAE but from NRIs in the UK and Australia as well. There are a lot of people who are asking about Pune and Bangalore," Vinay Kumar, head of international marketing at Sobha, said at the event.
"It is a very good time to buy due to weakening of the Indian rupee. For the same value, you can now buy a bigger house compared to last year. So it is a very good time to buy. As the Indian economy is growing, it will benefit all."
India Real Estate Show 2018 was held at the Crowne Plaza. Vipul, Consul-General of India, inaugurated the exhibition along with senior executives of Khaleej Times and Indiabulls Home Loans.
Mohammed Akbar Baig, relationship manager at Puravankara, said most of the demand was for the affordable segment and people want to invest to make a good rental income.
"I would say it is the right time to buy property in India because rupee has been going down and the real estate was total roller-coaster during the last three years. But thanks to introduction of Rera, GST and demonitisation, now we have a standard procedure, so it is the right time to invest. In coming years, you will see a lot demand in properties, because now the system is in place. Because of Rera, now it is a customer-centric market," he said.
"Now the developer has to abide by the rules of Rera. So it is a good time to invest in real estate especially in places like Bangalore and Pune because IT companies are expanding there. But if you look at the prices in Mumbai, it has already peaked. Bangalore and Hyderabad are ideal locations because companies are moving there and the government is being very supportive," Baig said.
Sanjay Mehrotra, national head of sales for marketing and CRM at L & T Realty, said Mumbai, Bangalore and Pune are the hottest markets for demand from NRIs followed by north and extreme south Indian cities.
"Hyderabad is picking up because government is building infrastructure there and IT companies are coming there. It is a sunrise location but it may take some time for people to get returns. I think Bangalore has done well in the last 12 to 18 months. But higher appreciation is expected in Mumbai. Overall the market is suppressed but it should pick up because Rera has brought a lot of confidence and discipline in the market. The developers are more cautious now," Mehrotra said during an interview on the sidelines of the exhibition.
He advised NRIs to do their homework and due diligence before buying property.
""They may try to save 1-2 per cent but might lose the entire money. You need to ensure that the credentials of the developer are good."