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Investment buzz: NRIs see Bengaluru as the most preferred city in Indian real estate market
Rise in housing sales, a decline in unsold inventories have attracted faith of NRIs towards the real estate market of Bengaluru.
On account of the robust rise of 80 per cent in the housing sales in Q1FY19 and decline in unsold inventories to the tune of 44 per cent in Bengaluru, the NRI segment of the investors are looking attracted towards the Bengaluru real estate market for investments. Industry insiders are of the opinion that Garden City’s inventory overhang declined from 42 months in Q1 2017 to 15 months by Q1 2019 end; new supply rose by a 39 per cent.
Speaking on the development Anuj Puri, Chairman at ANAROCK Property Consultants said, "Bengaluru has been one of the most active residential markets over the last two years with overall housing sales rising by 80 per cent in Q1 2019 against the same period in 2017 while the overall unsold stock declined by a whopping 44 per cent during the same period - the maximum among top cities."
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On NRIs preferring to invest in the Bengaluru real estate market Anuj Puri of ANAROCK said, "As per ANAROCK consumer sentiment survey, for 31 per cent NRIs, Bangalore was the most preferred city for investment. The survey findings also pointed out that a whopping 67 per cent buyers in Bengaluru were happy with the builder from whom they bought their property and if given a chance they will again buy from the same builder. This coincides with its major USP (Unique Sale Proposition) wherein buyers have far less fear for project completion in comparison to other prominent cities."
He said that unprecedented commercial growth backed by burgeoning start-ups over the last few years has inevitably raised the disposable incomes of the IT or ITeS professionals and new entrepreneurs. It is this new and young population that is driving housing sales in the city. Much to their delight, prices were also fairly attractive and couldn’t possibly get lower than this. Alternately, to clear their unsold stock, developers also offered attractive deals and discounts to them. Therefore, many felt it be the most opportune time to buy a property since it won’t be long enough when developers would hike property prices due to better overall housing sales and buyer sentiments.
Elaborating upon the reason for NRIs faith into the Bengaluru real estate market Rakesh Yadav, CMD, Antriksh India Group said, "What an investor want is a return of his or her money with better possible appreciation in its investments. As the housing sales in the city have registered robust growth leading to declining in the unsold inventories, NRIs are bound to get attracted with the higher chances of return of their money." He said that a developer would be able to return the money with the interest assured to an NRIs or any investor only when the project is a successful venture and sales has a major role in it. "I would give major credit to the rise in sales that led to a rise in positive sentiments of the NRIs in the Bengaluru real estate market," concluded Yadav.
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