From Our Special Correspondent
Daijiworld Media Network

Bangalore, Aug 22: The record climbdown of the rupee against the US Dollar could be the ideal opportunity to non-resident Indians (NRIs) in India to buy property as they would earn substantially higher sums for their Dollar holdings, feels the ASSOCHAM.

The ASSOCHAM Secretary General D S Rawat, who released a paper on “falling Rupee sparks property boom from NRIs,” said realtors in major cities were expecting an increase of 35 per cent in business enquiries from the expatriates this year.
``With the rupee riding low against the dollar, Indian residents are looking to accelerate investment plans back home,” Rawat said.

Rupee has fallen by about 34 per cent against the US dollar since August 2011 and breached the 65 mark against the dollar, he said.

Bangalore is the most favourite property investment destination for NRIs followed by Chennai, Mumbai, Ahmedabad, Dehra Dun, as per the ASSOCHAM paper.

ASSOCHAM conducted a random survey of nearly 1250 real estate developers in Delhi-NCR, Dera Basi, Mohali near Chandigarh, Mumbai, Kolkata, Bangalore, Hyderabad, Ahemdabad, Pune, Dehra Dun, Chennai etc.

The survey reveals that interest for buying property by NRIs has suddenly increased due to favourable exchange rates.

“The Indian property developers are anticipating a 35% surge in enquiries to NRI-based purchasers as the rupee dip against the dollar last six months. The decline in rupee has increased property sales because people want to get value for their money,” says the ASSOCHAM quoting the developers.

Rawat further said, “It’s definitely not good news for people back at home, but for a non-resident Indian (NRI), this is definitely the best time to invest. At the moment any non-resident Indian buying a property in India can save around 20-30% on his/her property value.

Majority of real estate developers said, the NRI traffic is coming primarily from the UAE/Gulf region, US, Singapore, Australia, UK, Canada, South-Africa etc. The demand is more for high end properties and commercial buildings.

The record decline in the value of the Indian rupee and the sluggish realty market, proved to be a double delight for overseas Indians investing in property here, ASSOCHAM said.

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Comment on this article

rauf, mangalore
Mon, Aug 26 2013
Dear Rudolf and Raj is realy right their opinion . Mangalore is not good for NRI or middle clas people to buy such bubled high price property in mangalore and its only black money people and realestate traders who make turnover the money today 50% property in dealers hand.It will be reach bottom level since their is no NRI to invest money in mangalore . if u go to bangalore u can get the apartment price from 1800 per sqft in a metro city. but in mangalore bez of the developers draged the price to the sky to sell their apartment and get hughe profit . Now that time very dificulty to resell the property what they have bought the price and problems of water,drinage ,trafic priblem will occur bez of the over suply of the property and their is no proper infrastructure in mangalore so far even a pedestrain cross bridge or trafic roundabout etc exmple people sufering from nanthoor interchange next geeration it may come new bridge. Think before invest in apartment how can u take your money back when u want to resale .keep ur budjet for apartment maximum price 2600 to 2800 per sqft other than this not good for enduser or investor put ur money in a bubled market .

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Rudolf, Mumbai
Sun, Aug 25 2013
@Raj you are right bro, the ground reality in realty is very bad due to sky high prices being quoted which only NRIs, rich businessmen, and those having black money can afford!! It appears there is heavy inventory backlog and more and more projects are being launched which appears too much of a supply for a city with a population of just over 5 lacs!!! No middle or higher middle class person having no access to other income can ever think of buying even a single bedroom flat at current rates!! Also, unlike metro cities like Mumbai where there is hardly any space for new supply, in Mangluru there is lots of land available on the outskirts which is easily and quickly accessible so potential of appreciation from here looks bleak and the bubble could burst anytime!! The sky high rates at present are due to the mad rush by some high networth individuals and NRIs to invest and speculate in realty expecting quick profits since the last couple of years!! And with hardly any real end user buyers majority are saddled with dead investments being unable to unlock the capital employed!! With further increase in house loan interest rates and increase in stamp duty, VAT etc. realty is just out of reach of any common man and wonder from where so many buyers will come!! Hope a 2008 situation does not arise in the near future!!!

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Raj, Mangalore
Sun, Aug 25 2013
Mangalore real estate already in buble it start slow down their is no fast buyer for apartment or lands . Idevelopers already paayed their role to increase the price price for the apartment in mangalore it started from Rs. 500 increased upto 4200 persqft now its resale is very dificult who bought the partment bez they ahve to add registration vat tax etc and loan intrest it is very difficulty either sell or recover their money what they paid . It wont sale morethan rs.2800 per sqft . Investors or NRI s now very careful when going to perchase the aprtment. bez their is oversuply in this market. It will crash very soon like 2008 in dubai and eropean market. when u buy the mortgage very careful you need other source to repay the loan.

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Vincent Rodrigues, Katapadi/Bangalore
Fri, Aug 23 2013
This is really right approach of NRI to invest more in India when their currency is having inflated value in exchange.Nothing new.Thanq.

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Rudolf, Mangalore
Fri, Aug 23 2013
As rightly pointed out by many there is heavy oversupply of flats in Mangalore and most of the purchases have been done by speculators and investors and not real users who are desperately waiting to sell and encash!! Now since the demand has gone down considerably due to overall economic recession there will a further lull in realty deals!! Only those working abroad can and will think of investing at such sky high rates!!! Appreciation from here on will be very tough for a prolonged period of time!!! Those who have taken loans and invested are badly trapped as housing loans are on the rise!! Moreover the rates quoted for land and flats is highly unrealistic considering it to be a small city!!! No middle class or even upper middle class working in India can ever think of buying a flat even in a small city like Mangalore!!

If one wants good returns then one should ideally invest in places around Mumbai, Panvel, Chakan (auto hub), and Pune where there is lot of scope for appreciation and one can dispose off the flat fast!!

Best is to stay in cash and see how the economic situation unfolds with the elections nearing!! Jai Jawan Jai Kisan!!

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Ashwin, Mangalore
Fri, Aug 23 2013
the depreciating rupee help a NRI only when he is remitting the money, but if an NRI wants to sell the real estate, then he will get less dollars which is bad. The article should highlight this point also.

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VINAYAKA, karnataka
Fri, Aug 23 2013
real estate !!!!! the bubble is yet to ruputure.

what happened to house market in US in 2008 ??

majority of people who have money already own 2-4 houses /flats ??

others dont have the money to buy ??

please note that less than 5% of indian population have more than 10 lakh income per year ?

then how the remaining people can buy a flat worth for one crore ?

forget it flat market will collapse soon....

a good site may fetch something..

only if people have money they can buy ?

now everybody is buying & selling, remember one can do this only upto saturation point.

IMPORTANT THING IS MAJORITY OF FLATS ARE OF POOR QUALITY & U PLEASE ANALYSE THE VALUE OF A 15 YEAR OLD FLAT ?? NOBODY WILL BUY.

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RDSOUZA, Doha-Qatar
Fri, Aug 23 2013
Its paid news. As Raj said its air filled baloon,in reality there are no buyers if you want sell.Do not buy properties in Mangalore for investment purpose.Buy only if you really need one to stay that too if it is available at not more than Rs 4000/sq feet at good location.
Dollar on an escalator...... Rupee on ventilator.... Nation in ICU.... we are in coma .... onions are in showroom..... God Bless India! The only way to save the Rupee is to have it tie a rakhi to the Dollar and say "Meri raksha karna!" :)

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Lawrence, Bangalore
Fri, Aug 23 2013
If you are investing in Bangalore North Bangalore is the best place to Invest .yeshwanthpur railway station is 25 minutes drive , MG Road is 25 minutes drive , Manyata techno park is located in Hebbal which is North Bangalore, Airport will be 20 minutes as a signal free flyover takes off from Hebbal and very soon Shooping Malls are coming up in and around Hebbal.NRI's who want a decent rent by buying a Apartment on a reasonable price Hebbal in North Bangalore is a Ideal place to Invest . Believe me you will not regret .

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KT, Mangalore
Fri, Aug 23 2013
do not buy property in managlore for investment purpose. in reality there is no appreciation in price only gossips. Buy small flats outskirts of Mumbai or pune if you are looking for appreciation. Many building in mangalore takes 5 to 6 years to complete from the date of first payment,so if you really calculate interest you wont benefit. Also property price is so much hiked as well, even Bangalore is cheaper than m'lore

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Ted, Mangalore
Fri, Aug 23 2013
Rupee Value will reach its peak value of 70 in September 2013 and then go back to 55 by February 2014.

Shift your funds to India the moment Rupee touches 70 in September 2013.

Source: Bloomberg, Deutsche Bank

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Mendonca, Kudla
Sun, Aug 25 2013
Since 1947 when did the Rupee become strong against a strong dollar, Euro or a Pound. May be the Rupee needs some extra strength (Chyawanprash).

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Blaan Mendonca, USA
Fri, Aug 23 2013
When we buy property in India we have to pay 40 to 60 percent in black (Pay cash in Dollars, Dirahms, any foreign currency or Rupees) and the rest of the money in White (cheque). When you go for registration the actual value of the Property is white (paid by Cheque). So what is the real property value, nobody knows.

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Lawrence, USA
Fri, Aug 23 2013
How it is possible to save 20 to 30% in buying property in India now, unless one is sure that rupee will strengthen to 20 to 30% in near future.

The way I see the present situation in India, rupee may decline further unless some drastic steps are taken to bring in the FDI.

Though the FDI in retail is allowed recently, the strong opposition from BJP for FDI in retail sector has raised a concern among the MNCs as to the stability for their investments. No retailers make profit in FDI for the first few years in new ventures due to huge capital expenditure.

Perhaps the MNCs are waiting for the results of next Lok Sabha election.

No one will forget the way India asked the Coco-cola and IBM to pack up from India in late 70's by Sangh Parivar(BJP) Govt. with a few days notice.

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Joy, Udupi
Fri, Aug 23 2013
All NRIs don't expect anything good from Politicians. If you have really good heart or loving your home country do something good for the poor. As you get more benefit on rupees fall, put some money on charity. That will benefit for the needy who are suffering from poverty.Investing money on property is a threat here in India, real estate will doom at any time.

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Lawrence, Mangalore/Abu Dhabi
Fri, Aug 23 2013
Its my humble request with DW editor to publish an article regarding DO's and DONT's (By any known economist/finance person) in controlling Indian economy. I don't think everyone will accept this, but some of them will at least try to give back something to our mother nation.

Lets keep aside our EGO & our political parties and let us just think/DO something good.
#Cheers#Peace#

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john dsouza, USA
Fri, Aug 23 2013
To be fair it is better to buy property out of country then purchasing in India. Where India is full of corrpution, Politican filling their pockets and fighting against each other.No proper developmen,roads, to be frank India is a shit place to live in where no respect for any one only people are back of money and how to cheat people including lawyer and govt offical. whether you have to do any leagl or illegal work you have to pay bribes. no propewr rules ,regulatuion, but really feel sad for this country

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Viraat, M'lore
Fri, Aug 23 2013
Patriot NRI's?

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geoffrey, hat hill
Fri, Aug 23 2013
Patriotism is supporting your country all the time and your government when it deserves – Mark Twain

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Shameer, UAE
Fri, Aug 23 2013
“It’s definitely not good news for people back at home, but for a non-resident Indian (NRI), this is definitely the best time to invest. At the moment any non-resident Indian buying a property in India can save around 20-30% on his/her property value"...

20 to 30% savings? How?

Property prices are not going down for anytime soon. Though ready property/flats is oversupplied - no one wants to sell at a lower price. It would take approximately 6-8 months more for the property prices to fall - provided there's no demand and inflation/bank interest rates go up and the rupee does not stabilise.

But that's not happening as NRI's will take advantage of the fall of rupee and builders are not stupid..they too will hike the prices..so where's the question of 20 to 30% savings?

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suman lobo, mangalore
Thu, Aug 22 2013
NRI's be careful,you may take a loan upto 10% now but think about 90% be careful this is the time for builders to make money. think 10 times abt your future pmt rather than present. god bless you

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Malcom Lewis, Kallianpur/Dubai
Thu, Aug 22 2013
Respected Sir Jossey
You just comment as you are on the seventh heaven, do u have any respect for your country? Please stop your cheap comments where whole country is facing a war like situation. Thankyou

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Malcom Lewis, Kallianpur/Dubai
Thu, Aug 22 2013
It Depends on a speculation, still u receive rupees or foreign currency? If rupees bounce back u r in benefit. Mr. Mukesh Ambani lost thousands of crores in this whole bargain. So dont worry trade in rupees. Lets believe our two top most Economists Dr.MMS and Mr.Chidambaram, if not they I can imagine in this situation all NRI Money would have repatriated from the country. NRI are so patriotic as equally as Residents. Support India.

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Jossey Saldanha, Mumbai
Thu, Aug 22 2013
Buying property in the UK, USA and Gulf is still a cheaper proposition than buying in India....

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raj, uk
Fri, Aug 23 2013
Investing for property in india,pls dont do this for gods sake.property in india is a Air filled ballon ,it started leaking ,still there is worse to come ,PLs NRI donot invest.

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Narendra Prabhu, Sullia/Bangalore
Fri, Aug 23 2013
I agree with you, But if real estate price collapse will immediately trigger a currency crisis.

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Comment on this article

rauf, mangalore

Rudolf, Mumbai

Raj, Mangalore

Vincent Rodrigues, Katapadi/Bangalore

Rudolf, Mangalore

Ashwin, Mangalore

VINAYAKA, karnataka

RDSOUZA, Doha-Qatar

Lawrence, Bangalore

KT, Mangalore

Ted, Mangalore

Mendonca, Kudla

Blaan Mendonca, USA

Lawrence, USA

Joy, Udupi

Lawrence, Mangalore/Abu Dhabi

john dsouza, USA

Viraat, M'lore

geoffrey, hat hill

Shameer, UAE

suman lobo, mangalore

Malcom Lewis, Kallianpur/Dubai

Malcom Lewis, Kallianpur/Dubai

Jossey Saldanha, Mumbai

raj, uk

Narendra Prabhu, Sullia/Bangalore

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Title: NRIs Eyeing Property Buys as Rupee Declines

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