Latest Property News on 'NRI'

Properties from across India to be showcased at UAE exhibition

DUBAI: Over 50 top developers from across India will be participating in a property fair here exclusively for the Non Resident Indians(NRIs).

The tenth edition of India homes fair will be held here from May 16-18.

Customers can choose properties from several projects that will be on display with varying options ranging from flats, apartments, row houses, plots and villas ranging from two million rupees to premium properties of up to Rs 15 crores and sizes ranging between 700 sq ft to over 10000 sq ft.

India’s housing finance company HDFC Ltd is also showcasing over 60,000 flats from across India at the exhibition.

“This is an interesting time for the NRI community to invest in the Indian real estate marketplace. Property buyers overseas normally have to address two key questions one is when to buy and the track record of the developer,” Ajay Sachdewa, Regional Head, Dubai & Gulf Cooperation Council (GCC), said.

The Gulf Cooperation Council includes six countries- Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE.

“The interest rates are expected to be reduced this year and since over 80 per cent of the people opt for floating rates, they will stand to benefit from the falling interest rates. NRIs can avail a maximum loan of 80 per cent of the cost of the property and opt from amongst a full suite of flexible repayment options,” said Sachdeva.

http://economictimes.indiatimes.com/markets/real-estate/news/properties-from-across-india-to-be-showcased-at-uae-exhibition/articleshow/20045487.cms

Indian expatriates drive Dubai’s realty sector growth

Indian expatriates are among the top investors in Dubai’s property market, which is expected to grow 10-12 percent this year, company officials and analysts say.

“Expatriates, mainly from India, Russia and Saudi Arabia, are leading the growth.

Indians are among the top five investors in Dubai’s property market,” Ziad El Chaar, Managing Director of Dubai-based Damac Properties, told IANS in New Delhi.

He said Dubai’s real estate sector witnessed around 10 percent growth in 2012 and this was likely to further accelerate this year.

Dubai’s property market crashed in 2008-09 due to liquidity problems arising out of the global financial and economic crisis. The market witnessed negative or zero growth between 2008 and 2011.

“The liquidity situation has improved and the perception is also changing. People are now bullish on the real estate market. The good thing is that we are witnessing organic growth. Real investors are coming into the market,” Chaar said in a telephonic interview from Dubai.

According to data compiled by Saudi Arabia-based Samba Financial Group, prices of mid-range villas and apartments in Dubai increased by 20-30 percent in January year-on-year.

“Increasing evidence is emerging that the property market in the UAE, and Dubai in particular, has bottomed out and that a strong recovery is apparent in certain segments,” the Samba Financial Group said in its monthly bulletin.
Strong demand for recently launched projects indicate the recovery in the sector.

The first phase of Damac Properties’ $1 billion Damac Towers by Paramount project was sold out on launch day itself. The project, located close to Burj Khalifa, the world’s tallest building, is expected to be ready by the end of 2015.

“This is the biggest real estate project in Dubai since the 2008 crisis. The response indicates a strong demand in the sector,” the Damac Properties MD said.

He said Indian expatriates, as well as residents, have booked a large number of properties in Damac projects. “Indians are among the top five investors in Damac as well as in other projects,” he said.

Chaar said Indian investors were buying properties in Dubai because of tax benefits, attractive prices and geographical proximity.

Dubai’s largest real estate developer, Emaar, recently claimed that its luxury project – The Address The BLVD – located in the downtown area, was sold out 24 hours.

http://www.track2realty.com/indian-expatriates-drive-dubais-realty-sector-growth/

Indiabulls real estate enters agreement with Doha Bank for NRI deals

Indiabulls Real Estate Ltd has tied up with Doha Bank to offer its NRI customers exclusive deals on properties in India.

Complimentary Home Loan eligibility checks, special offers on Indiabulls properties and exclusive promotion for Doha Bank Indian customers will be part of the special offer.

The agreement offers mortgage loans to its NRI customers for acquiring properties in India, serving the growing demand from expatriate Indians for home loans and property acquisition in Indiabulls’ housing projects.

“With the opening of an office in Dubai last year, company’s future plans include opening of offices in other GCC countries including Qatar,” said Santosh Tandel, Regional Head – MENA Region, Indiabulls.

“We aim to connect more and provide seamless service through the arrangement. Gulf NRIs have always contributed significantly in the Indian economy whether it is remittances or investments in properties,” he said.

According to him, overall NRIs make up for 25 per cent of its business plus NRIs in GCC countries including Qatar are constantly looking for appropriate property investment opportunities both for end use as well as investment purpose.

“With an approximate 20 per cent of the Qatar¿s population comprising of Indians, the need to have a local representation catering to this segment was vital,” he said.

“The Indian real estate market, which is expected to reach USD 90 billion by 2015, is undergoing a shift. The fall of the rupee is encouraging more investment by Gulf-based NRIs into the realty market which offers relatively higher returns.

“Properties continue to be a preferred choice for expat Indians for investment and asset creation. What they look for is a good brand to invest and a price point which is good to enter. For NRI’s reputed developer with good track record, quality and possible price appreciation is an important factor,” Tandel said.

http://www.financialexpress.com/news/indiabulls-real-estate-enters-agreement-with-doha-bank-for-nri-deals/1090793/0

NRIs  can  take  home  loans  but  conditions  apply

Source: Livemint By: Tania Kishore Jaleel Publish: 5-March-2013

Over 50 developers to participate in Indian Property Show

DUBAI: ver 50 Indian realty players will showcase properties, including luxury housing and commercial spaces, at an exhibition in Doha later this month.

The exhibitors at the ‘Indian Property Show’ would include real estate developers, construction companies, banks and real estate agents, Sumansa Exhibitions, who are organising the event, said.

The show will showcase thousands of properties from across the country, it said, adding that it will provide a platform for direct interaction between developers and potential property buyers.

“Indian Property market is a hot investment option even today and the sentiment is echoed by all the developers back in India as the enquiries and purchases by NRIs have kept on increasing,” said Sunil Jaiswal, CEO of Sumansa Exhibitions.

Jaiswal said demand for residential property will remain strong because of the improving business climate and the depreciating value of rupee, which is attracting NRI to make investments in the real estate sector.

“Big cities such as Delhi and Mumbai are still offering good returns but smaller, satellite cities such as Pune, Gurgaon and Noida have emerged as key destinations for investments,” he added.

The exhibition would have seminars highlighting properties by various developers, Sumansa Exhibitions said.

Developers will be showcasing apartments, villas, row houses, commercial & retail properties and farm land from across the Indian cities like Delhi, Noida, Greater Noida, Gurgaon, Jaipur, Mumbai, Navi Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Kochi and other cities, it added.

http://economictimes.indiatimes.com/markets/real-estate/news/over-50-developers-to-participate-in-indian-property-show/articleshow/18606855.cms

Can encroachers be removed?

Abhijit Biswas, a software engineer living in the US for the past few decades decided to take his mother along with him for better medical attention. He locked up his ancestral house in Kolkata with plans to renovate it subsequently and give it out on rent. A few months later when he came back to India for getting the renovation work done, to his surprise the house had been turned into a club house by local goons. This is a common situation for many NRIs who are unable to physically look after their properties back home.

How it takes place

Local mafia can encroach into vacant property and may even create documents to prove their rights to it. The local revenue authorities can also be bribed to help their cause. When challenged, these people may even resort to violence in dissuading the real owner from attempting repossession.
Evicting such people is not easy due to two reasons. Firstly such elements are usually well connected to local thugs and politicians. Secondly the tenancy laws in India have provisions to protect the person in possession even if it is unauthorised.

Preventive Plan

A NRI who is away for long must ensure that the property back home is safeguarded to prevent a situation where a tiresome legal process is required. Here are a few steps that should be undertaken:

Documentation: The moment one gets the ownership of a property one should apply for mutation and arrange all other requisite papers such as the sale agreement, title deeds etc. Additionally, the owner has to ensure that the municipal taxes, water bills and electricity dues are paid on time the receipts kept secure.

Public Notification: In case the property has been inherited or bequeathed, then the new owner must put up notification to the same effect in a local newspaper and keep copies for future requirement.

Fencing/ Board: In case of a vacant plot it is advisable to construct a boundary wall and put up a notice board stating the ownership and right to property. This not only physically protects from encroachment but also makes it difficult for unscrupulous elements to sell off the property to a third party by creating forged documents.

Tenancy: In case of giving the house on rent one needs to do a proper verification of the tenant and create a sound agreement with provisions for renewal and termination. Where required even a police registration of the tenant is a good measure to ensure safety.

Professional Help: There are many companies which provide services such as looking after your property for a service commission. Hiring them is also not a bad idea given the value of property in the long run.

Action Plan

In a situation where you realise that your property back home has been encroached one needs to take immediate steps to ensure early eviction:
Get Ready: The first step in such a situation is to brace up for some tough struggle to get back your property. Ensure that the necessary documents are place before approaching anyone.

Police Complaint: Make a proper complaint with copies of all documents proving ownership at the nearest police station. The Specific Relief Act, 1963 (Articles 5 and 6) provide relief in such cases to help the actual owner in getting back possession of his property.

Legal Help: After the police complaint, the next step is to get professional legal advice on the further course of action for early repossession. Explore all options of filing a legal suit to obtain a restraint order or injunctive relief (stay) on the property.

Negotiate: There is no harm in negotiating with the people who have encroached on order to have an out of court settlement. Many a time the problem can be resolved through direct talks much faster than expected. However all such negotiations must be done with legal advice.

Be Patient: Such cases are likely to be frustrating and protracted. One must refrain from undertaking any illegal means to effect the eviction since such a step may land you in more trouble. A little care and caution can help you avoid such complications involving valuable property back home.

http://www.financialexpress.com/news/can-encroachers-be-removed-/1061530/0

NRI buyers: Be doubly cautious

Ajay Khurana, a NRI recently booked an apartment in Noida at an expo held in Toronto from a new developer. The suave executive of the developer convinced Ajay of a wonderful deal, which to his horror turned into a nightmare when he landed up in Delhi a few months later.

The construction was yet to commence with no signs of the roads and other facilities in sight as promised in the glossy brochures. His friends in Delhi further informed him that the project was a non starter with exorbitant prices. The developer’s earlier projects were also held up due to litigation and approval issues. Ajay is not the only victim of such a situation, there are several unsuspecting NRIs who have been promised the skies but reality turns bitter.

Typical Malpractices

Here are some of the possible problems that NRI buyers may face:

* Falsely inflated prices.

* Escalation during construction.

* Hidden costs not disclosed.

* Lack of permits and approvals while accepting bookings.

* Delayed construction.

* Poor quality materials, which are not as per specifications agreed upon.

* Sale or cancellation of booking without intimation to original buyer.

* Constructing on property under litigation attracting legal action.

There are developers across the country who try to sell off failed and disputed projects to NRIs at higher prices by targeted marketing campaigns abroad. Some of the common strategies adopted include:

* False photos and videos claiming actual site depiction to convince about the state of construction.

* False approval letters on clearances that cannot be verified by the NRIs.

* Offer of huge discounts on price per square feet from a hugely inflated rate.

* Additional facilities at no extra cost.

* Showing false government plans of developing infrastructure in that locality so as to make the project lucrative.

* Providing incorrect and fictitious references and testimonials of clients and customers from the NRI community.

Select the Right Developer

Here are a few guidelines for choosing the right developer:

* Check track record of projects completed and look out for delayed projects

* Seek information regarding customer service quality and complaints made by buyers, if any.

* Enquire about the quality of construction and fittings in earlier projects.

* Look out for history of any litigation either with a customer or civic agencies.

Verifying the Documents

There are a few documents that the NRI buyer must insist on checking in original both at the time of booking a house as well as at possession:

* Clear Title deed in original along with history of transaction on the property.

* Encumbrance Certificate.

* No Due Certificate from bank if property was mortgaged.

* Approval of layout of the project.

* Intimation of disapproval by local civic authority (valid for one year only).

* Building Use Permission from local municipality consisting of:

NOC from department of fire services, power load sanction from the local electricity board, permission for drainage and sewerage connections, permission for water supply, approval from pollution control board, permission from the public health authorities.

NRI buyers must stay clear of the arbitration clause in the agreement drafted by the developer. They should not agree to the arbitration clause in terms of conditions relating place or arbitrators. If required the buyer should insist on a sole arbitrator who is acceptable to both parties.

Before taking possession

Before taking possession, do verify the following documents:

* Completion certificate issued by the local municipal authority indicating compliance and suitability for occupation.

* Possession certificate from local municipal authority indicating completion and functioning of water, sewage and electrical connections.

* Society papers and bye-laws for maintenance of the project by the registered owners.

Marketing campaigns and smooth talk by sales executives should not be the criteria for decision on property investment in India. In order to avoid being in a frustrating realty situation, the NRIs need to cross check the developer’s reputation and the prevailing prices at the locality through government agencies, NRI forums, friends and acquaintances before entering into any property deal from abroad.

http://www.indianexpress.com/news/nri-buyers-be-doubly-cautious/1038672/0

Wadia Group to take Bombay Realty project to Dubai

Dubai: Business conglomerate Wadia Group, which has recently established its realty arm Bombay Realty, will bring its flagship project for the NRI community in Dubai at the Indian Property Show to be held between December 13-15, a company statement said.

The Group’s first fully integrated Mixed Use development in Mumbai known as the Island City Center (ICC) would be located in Dadar.

Commenting on the project, Jeh Wadia, Managing Director, The Bombay Dyeing & Manufacturing Co Ltd said: “The Group has, around 70 acres of land in the heart of the city. With the launch of Mixed Use project ‘The Island City Center’ we are offering a lifestyle that provides the ability to live, work and play. All at one place.”

The Island City Center aims to provide a better quality of life to its residents, by saving them a couple of hours of commute every day, which they can then spend with their family and friends, he added.

A development spread across 29 acres of land will consist of luxury residences, offices, 5-star hotel, serviced apartments, a high street, a mall, an international school and 6 acres of green landscape, he added.

Durgesh Mehta, joint Managing Director, The Bombay Dyeing & Manufacturing, said luxury housing is emerging as one of the most vibrant and dynamic real estate segments in India.

“The growing demand for luxury housing can be attributed to the rise in the number of HNIs, the rapid pace of urbanisation, the influx of global lifestyle trends and fast-growing service industries propelling many middle-income group individuals into the HNIs bracket,” he said.

He added that NRIs are inclined toward luxury developments like these as they get used to luxury lifestyle in international cities like Dubai.

According to Mehta, the recent fall in the value of the Indian rupee in the global financial markets has boosted Non-Resident Indian (NRI) buyers’ interest in investing in luxury housing and encouraged most celebrated developers to launch projects with exceptional facilities.

The project also features a 20:80 finance scheme (for a limited time) where one only pays 20 percent upfront and 80 percent on possession. The towers have also been approved by leading financial institutions, the statement said.

http://www.financialexpress.com/news/wadia-group-to-take-bombay-realty-project-to-dubai/1038509/0

Apartment glut grows in metros

Looking for an apartment in the Delhi/NCR or Mumbai regions? You could hope for easier prices, say some industry experts. With the forced cheer of a difficult festival season drawing to an end, developers, who are already sitting on huge inventories, are likely to come under immense pressure to increase cash flows by slashing prices as interest rates increase their expenses.

According to data available on stock exchanges, 25 listed real estate companies have a total of around Rs. 40,000-crore worth inventories on their balance sheets. Also, the Mumbai Metropolitan Region and National Capital Region have 250,000 unsold apartments.

“Urban economics has gone haywire as inventories are piling up because people are unable to afford property at current prices,” said Pankaj Kapoor, managing director, Liases Foras, a real estate research firm. “Developers are facing serious cash flow problems and we can see it. Inventories are only going to increase in the next six months.”

However, real estate prices have stayed stagnant in 2012 in Mumbai with a mere 0.3% increase in rates, a research report by Knight Frank says. Figures show that real estate sales have been falling by around 25% year after year since 2010 because of high prices.

Industry trackers say that real estate developers have been applying the brakes on project launches. The number of project launches that happen around Diwali in Mumbai and NCR have gone down by around 40% and 45% respectively.

But there are some who say easier prices may not be, well, easy. “It is not as simple as it looks,” says the chief financial officer of a listed firm. “Large investors buy properties only to speculate. They would never let developers slash prices.”

While in 2008, listed realtors brought qualified institutional investors in to rescue them, between 2009-2011, private equity players saved them. At this point, there are no more rescuers in sight.

http://www.hindustantimes.com/News-Feed/BusinessRealEstate/Apartment-glut-grows-in-metros/Article1-959298.aspx

Falling rupee helps NRIs in Middle East to buy properties in India

The decline in value of rupee over the last one year is luring NRIs living in the UAE to buy property in India even if the price stretched up to Rs 1 crore or more, according to a survey.

According to the survey conducted here by Sumansa Exhibitions who are organisers of Indian Property Show, 89 percent of NRIs (non-resident Indians) in the UAE are planning to leverage the power of their additional income by investing in properties worth up to Rs 1 crore and beyond.

The weakening rupee gives more power to dirham currency that they have and current sluggish market enables them to buy properties at a cheaper rate in India, it said. It added that 26.7 percent NRIs are looking to buy properties as additional investment, a sharp rise of 6 percent in one year.

NRIs in the UAE mostly prefer investing in property as it is one of the safest option and gives good return as the capital value of any property appreciates, Sumansa Exhibition CEO Sunil Jaiswal said.

“Plus, there is always feeling of returning home since NRIs don’t get citizenship in this region, so property investment becomes natural choice. We can support this further as the survey also reveals that Mumbai, Bengaluru and Delhi feature in the top five destinations list,” he said.

This shows that they are looking for cities which will give them good returns, he said. “Even if the NRI takes home-loan, his payouts are much cheaper as compared to last year. Hence, overall investing in this sector when rupee is low, makes sense,” Jaiswal added.

Honey Katiyal, CEO of Dubai-based Indian real estate consultancy Investors Clinic, said over the last year, his company has witnessed demand for properties which are higher in value as the NRIs want to cash in on this situation and invest more to get better returns in future.

The trend is to invest in additional property in metro cities and enjoy the capital appreciation in 4-5 years time, he added. A representative of Indiabulls said with rupee depreciating in the past couple of years, there has been a good amount of remittance going back to India. Additionally, the bank deposits have also started yielding good returns making that as a good investment alternative.

“However properties continue to be a preferred choice for expat Indians for investment and asset creation. What they look for is a good brand to invest and a price point which is good to enter.

For NRIs, a reputed developer with good track record, quality and possible price appreciation is an important factor,” he said.Sunil D’Costa, Manager (International Sales) Sahara Prime City, Sahara Group’s real estate division, said: “Property investments in India are believed to be the smartest move as chances of loss are negligible. The growth graph of the real estate sector is observed to be escalating day by day”.

Rupee depreciation against the dollar is a great attraction for NRI’s to invest back home so if you keep a horizon of 2-3 years, an average return of 25-30 percent is guaranteed, he added. “In terms of location, other than metropolitans and Tier-1 cities, momentum of investment in Tier-2 and Tier-3 cities is quite high, plus the rate of appreciation is much more due to fast paced infrastructural developments,” he added.

http://www.firstpost.com/fwire/economy-fwire/falling-rupee-helps-nris-in-middle-east-to-buy-properties-in-india-523994.html?utm_source=fwire&utm_medium=hp