Hyderabad has always been a popular destination for NRI real estate investment, primarily due to its developed commercial infrastructure. As more organisations set up their offices in Hyderabad, this creates an enormous job market and an equally enormous requirement for residential areas. And the time for investment has never been better.
With the rupee witnessing a major fall against the dollar in recent months, it is an opportune time for NRI real estate investments in Hyderabad. The depreciating currency value is benefitting NRI investors significantly as investors get more square feet of space for the same amount in the foreign currency. NRIs can also leverage the power of their additional income by investing in properties because prices in Hyderabad have corrected over the past few years.
Emerging Growth Corridors
Many areas in Hyderabad are gaining interest from NRIs for their location, connectivity and investment potential. Both Nallagandla and Chandanagar-Miyapur are growing areas that have strategic proximity to the IT and Finance hubs. While Nallagandla is rapidly developing and becoming a residential hotspot, nearby areas including Lingampally and BHEL Township are also gaining interest amongst NRIs. Manikonda, Kondapur, and Shamshabad – with its close proximity to the international airport – are very popular localities as well. These areas are characterised by their proximity to industry hubs, social infrastructure, transport centres and connectivity throughout the city.
Amenities & Special Offers
The slowdown witnessed in the residential real estate market over the past few years has had developers increase their focus on NRI customers with the hope to revive markets. The lull in domestic sales was further aggravated by demonetisation and other major policy shifts. To attract NRIs, projects were built with the full range of amenities and tended towards luxury living spaces, which have always been the choice of NRI investors. Developers were marketing to NRIs with a host of special offers and features. For example, projects that offer property management is crucial as it maintains the value of the property. Purchasing a home from a developer with their own property management services would be an advantage.
Implementation of RERA
The implementation of the Real Estate Regulatory Act (RERA) will go a long way in formalising the sector and inspiring consumer confidence in the real estate market. The lack of transparency and communication with developers made NRIs apprehensive about investing in real estate despite the hope for lucrative returns. Although Hyderabad has always been a strong market for NRI real estate investments, stalled projects were a major concern. Many projects were being launched regularly, while there was no guarantee for completion of projects unless you were dealing with a reputed developer. RERA ensures that a deadline for project completion must be enforced.
Without RERA registration, developers will not be allowed to promote or sell any project. RERA also mandates that developers must disclose all information for registered projects including details of promoters, layout plan, land status, schedule of execution and status of various approvals. This will effectively weed out any unscrupulous players from the market and only allow credible developers to flourish. RERA’s emphasis on consumer protection and standardisation of business practices will only enhance NRI investment.