Fewer NRIs are investing in real estate in Mumbai.
While NRIs contributed to 20-25% sales in Mumbai five years ago, the number has now come down to 7%.
According to experts, the dip is a result of exorbitant pricing, strengthening of rupee, frequent changes in rules and lack of clarity, among others.
Sukhraj Nahar, chairman and managing director, Nahar Group, which has offices abroad to promote sales, said, “The number of transactions has come down.”
While NRIs from the UAE top the list, those from USA, UK, Canada, Australia and Singapore, too, contribute substantially to the real estate market.
Read: Real estate sector slowdown : New development projects in Mumbai dip by 36 per cent
Real estate expert Ajay Chaturvedi said Indian market is facing competition from places like Dubai. “NRIs are getting fabulous deals abroad along with various sops like tax rebates,” said Chaturvedi.
The Goods and Service Tax (GST), Benami Transactions (Prohibition) Amended Act, 2016 and the Real estate (Regulation and Development) Act, 2016 (RERA) could boost their confidence, he said.
“NRIs know real estate prices won’t rise anymore. In fact, there are signs that they may drop. They see no sense in buying expensive property and renting it out,” said Pankaj Kapoor, CEO, Liases Foras, a real estate research firm. “In addition, the strengthening of rupee and job insecurity are spoiling it further.”