The world is in an economic tizzy. The Euro block is going through a nightmarish experience as their countries try to tighten their belt despite huge home resistance.
But for India, what is really hurting recently, is the weakness in the Rs. To date it has dropped to Rs. 52.30 to the $.
This is exactly the golden wand that the Builder community was hoping for and they are gladly reaching out to it.
I have been highlighting over the last few articles how the situation is steadilty deteriorating for the builders. High interest rates, lack of quick approvals of new proposals, lack of buyers interest because of unheard of rates, high cost of labour and material...
The drop in the Rupees has seen a corrresponding surge in the interest from the NRIs who stand to gain. Now their $ buck has almost 16% additional value since July11. Recently a new project at Delhi is supposedly to have sold of within a fortnight 240 of the 300 apartments on offer-40% of them to NRIs despite being priced between 1- 3 crores.
Add the 10-15% discount that builders are ready to offer for a ready downpayment and the effective price has then dropped down almost by 25-30% for the NRI.
"We have seen a 250% jump in the number of NRIs buying homes in the past few months," says Vikas Oberoi, managing director of Oberoi Realty, a listed company, which has several residential and commercial projects in Mumbai.
A number of NRIs are buying into the luxury apartments. "A lot of these NRIs are senior executives and entrepreneurs who want to have a base back home," he says.
Most builders still prefer creating the luxury apartment where margins are much higher. The NRI's money only keeps sustaining the builder's greed!
While this is the golden wand to the builders fraternity, it certainly does not help the local situation and local population.
But for India, what is really hurting recently, is the weakness in the Rs. To date it has dropped to Rs. 52.30 to the $.
This is exactly the golden wand that the Builder community was hoping for and they are gladly reaching out to it.
I have been highlighting over the last few articles how the situation is steadilty deteriorating for the builders. High interest rates, lack of quick approvals of new proposals, lack of buyers interest because of unheard of rates, high cost of labour and material...
The drop in the Rupees has seen a corrresponding surge in the interest from the NRIs who stand to gain. Now their $ buck has almost 16% additional value since July11. Recently a new project at Delhi is supposedly to have sold of within a fortnight 240 of the 300 apartments on offer-40% of them to NRIs despite being priced between 1- 3 crores.
Add the 10-15% discount that builders are ready to offer for a ready downpayment and the effective price has then dropped down almost by 25-30% for the NRI.
"We have seen a 250% jump in the number of NRIs buying homes in the past few months," says Vikas Oberoi, managing director of Oberoi Realty, a listed company, which has several residential and commercial projects in Mumbai.
A number of NRIs are buying into the luxury apartments. "A lot of these NRIs are senior executives and entrepreneurs who want to have a base back home," he says.
Most builders still prefer creating the luxury apartment where margins are much higher. The NRI's money only keeps sustaining the builder's greed!
While this is the golden wand to the builders fraternity, it certainly does not help the local situation and local population.