September 2017 | Back to all Real Estate Articles
With renewed transparency and accountability in the real estate market, investing in Tricity realty could prove good value for money for NRIs. The market sentiment too is upbeat with lucrative property rates, attractive finance schemes from banks and offers and discounts from developers.
As the festive season begins, real estate developers in the Tricity region have high hopes from the Non-Resident Indian (NRI) investors to bring a boom in the market and put it back on the fast track. Their aspirations and expectations rise from the fact that most NRIs visit India around this time of the year. The realtors expect that with improving infrastructure, low property prices, cut in stamp duty by Punjab government and economic and political stability, its an ideal time for NRIs to put their money in Tricity real estate.
In earlier years, the opaque nature of the realty business, with its lack of information and no due diligence, did not inspire much confidence in the Punjabi diaspora. However, with some of the key policy changes in the past one year, like the Real Estate Regulation Act (RERA), demonetisation, the Goods and Services Tax (GST), NRIs will now be more confident in making an investment decision. Also, to simplify the purchasing processes, several rules and regulations have been amended. In addition, lenient FEMA policies and relaxation of laws by the RBI regarding property buying by NRIs, are likely to boost their participation.
"With tight regulations, greater transparency, more affordability and enhanced price stability, NRIs will find interesting investment opportunities in areas like Zirakpur and Mohali, as long as they have a long-term view and are discerning about which project to invest in," says Col Inderjit Kumar, Head, Sales and Marketing, JLPL.
In the past also, NRIs have invested a sizeable amount in real estate, and their participation brought about strength in the market. Ramesh Sharma, a real estate agent, shares, "With almost no option within Chandigarh, Panchkula and Mohali to buy property, periphery areas surrounding Zirakpur, Patiala Road, New Chandigarh and Mohali are preferred by NRIs, especially from Punjab--who seek higher security, greener surroundings, luxurious lifestyle and proximity to educational, health and recreational set-ups. Villas, apartments and penthouses are what they eye at. Though, the market has been somewhat slow till last year, the real estate scenario is expected to take a high stride starting with the festive season."
Raman Singla, GM, SBP Group, says, "Punjabis form a major part of NRIs. With the starting of international flights from Mohali, NRIs are now keen on buying property in Chandigarh periphery as their travel would be easy. Property is at a decent pricing right now, compared to the past years. NRIs go by the brand value of the project, showing interest mostly in projects approved by the government."
Umang Jindal, Director, Homeland Heights, says, "There are several factors that make Mohali and surrounding areas an attractive hotspot for NRI buyers. Prominent amongst them is well developed infrastructure, easy access to the airport, and presence of premier health institutes and entertainment centres. Also, these areas are strategically located adjoining Chandigarh and have direct connectivity to Delhi, most areas of Punjab and even the hills of Himachal Pradesh."
NRIs are also aware that residential inventory has piled up and they are currently very well-placed to find good bargains in these markets, as most developers are offering discounts and other attractive schemes. However, once the economy begins to grow, housing demand is again going to rise and it will lead to price escalation. So, for NRIs who are waiting on the edge, this is the right time to invest. Once the primary residence is secured, with surplus funds they can also invest in rental income-generating apartments or commercial properties as well. However, they should we wary of projects by unknown developers who have no existing track record. NRIs should strictly follow a check-list of points to verify, such as the RERA registration of developer, his track record and brand visibility, the soundness of the identified location in terms of civic and social infrastructure and amenities in the project.