NRI Property Investors Zero In On Pune City


By Mr. Kishor Pate, CMD - Amit Enterprises Housing Ltd.

There has been a decisive resurgence of interest by NRIs (Non-Residents Indians) in Pune property investments. The scale of rise has not spectacular.But, it does indicate that NRI investor confidence is returning.

NRI property investors tend to stay away from unfamiliar, historically over speculative cities & focus on either on their cities of origin or on those that offer assured and stable returns on investment. The fact that Pune, with over 210 software companies, has overtaken even Bangalore and 208 in terms of IT-driven demand for residential properties has stood in the city's favour.



Naturally, NRIs prefer to invest in residential in Pune city  that can earn them handsome rental returns & will also appreciate for eventual resale. They are showing a lot of demand for luxury houses as well as higher mid - income residences in the price range of Rs. 65 lakh to Rs. 3.5 crore and above.

Mr. Kishor Pate

There is considerable interest in under-construction residential projects nearing completion, since these are available at lower rates. NRI property investors who are focused on rental income are on the look-out for projects in areas with sustainable demand from potential tenants.

In commercial properties, NRI investors looking at the Pune real estate market look for projects by reputed developers / promoters which are fully or almost fully leased out. Their investment appetite in this segment ranges between Rs. 5 to Rs. 30 crore.
 
Despite Pune's burgeoning retail sector, NRIs are largely staying away from investments in retail projects as there far too much supply on the market. This makes investing in retail properties unattractive to them.

Challenges NRI Investors Face..!

Apart from a generic understanding, NRIs tend to be out of touch with Pune city's real estate market. Therefore, they are not attuned to what locations & typologies work best for residential property investment. There is a lot of investigation required on the ground before a residential property investment becomes viable - especially in large-ticket assets.

Also, the previous route of buying a property by 'remote control' via a power of attorney has now been closed.
 
The NRI Modus Operandi..!

NRIs who are currently abroad therefore ask their relatives or close associates in Pune to co-ordinate with reputed developers and also brokerages.

Most NRI's focused on Pune property will visit the city during the festive season to finalize the property and conclude the transactions.

However, it should not be assumed that NRI property buyers are entirely clueless. In fact, they are extremely discerning. The fact that they have been exposed to the transparency of real estate markets in developed nations understandably raises their expectations in term of value for money, construction quality, facilities & amenities offered, and overall transparency.

 

Contrary to commonly held belief, most NRI property investors looking at Pune city are aware that expecting substantial short-term gains on their investments is unrealistic. They are not 'quick buck' hunters, but rather serious portfolio players.

For Media Contact...!
Jay Kalghatgi
Client Interface - CopyConnect
Mobile: 9320142248


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