Zia said those who want to buy houses for investment purpose are finding it too costly at present.
The consistency in the value of rupee against the dollar and the sluggish market in India are dithering the non-resident Indians (NRIs) from investing in property in the country.
According to experts of Knight Frank, a global property brokerage and research firm, the rupee is not depreciating. "NRIs buy property for two reasons – for their dream home in India and as an investment. Those who have spent 30-35 years in foreign developed countries are not excited to return to India anymore. These people are worried and they try to get their children to get some work there, so that they can continue to stay," said Gulam Zia. executive director of Knight Frank, India.
Zia said those who want to buy houses for investment purpose are finding it too costly at present. "The reason is that the rupee has not depreciated. Besides, there is no significant appreciation in the property market for the last two years. Therefore, most of them are currently worried to retain their existing work. This wait and watch approach will continue till the markets revive," he added.
He further said in Mumbai property market, the percentage of NRIs investing is merely 5 per cent and the trend is badly affecting the South Indian property market, where generally the NRIs invest in large numbers.
Pankaj Kapoor, MD at property research firm Liases and Foras, said sustainability is currently the main factor. "The doom in the oil market and the crashing China market have also wreaked havoc in the NRI market. The gulf market is directly connected to the international commodity and oil market. Therefore, people who are overseas are struggling to retain their present profile," said Kapoor.
Ramesh Badgujar, a resident of Navi Mumbai who works with an oil firm in the gulf, said after the slide in the oil market, the firms were facing problems in retaining their production as well as staff. "Cost-cutting is a popular word.
Most firms are slashing their flab and as a result people are losing their jobs. We are also working in a fearful situation. Therefore, right now, we are not thinking about investing in India. At presently, survival is for the fittest," he said.
Anand Gupta, president of the Builder Association of India, said not only NRIs but almost all investors have opted for the wait-and-watch approach. "The government is coming up with various new housing policies and regulatory authorities. How much impact it will have on the property market is to be seen. This temporary phenomenon will be over soon. Once there is clarity on these issues, the market will surely bounce back," he said.
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