The consistent depreciation of the rupee is having a notable impact, positively influencing the demand for residential properties from Non-Resident Indians (NRIs) in several Indian cities, with Mumbai as a focal point. The rupee's value has been steadily declining, reaching new record lows on a frequent basis. It even touched 54.82 per dollar in early trading today. Exporters and NRIs are particularly well-positioned to benefit from this currency weakness, as they obtain more rupee funds upon conversion.
Who Benefits?
The term "NRI" encompasses Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs), creating a broader pool of potential investors. This advantageous currency situation is further amplified by the willingness of developers to provide discounts.
Expert Opinion
According to Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India, the slide in rupee value directly translates into more affordable real estate for NRIs. “Because of the rupee’s downward trend, real estate has become cheaper for NRIs and many of them are now actively seeking residential property investment opportunities in the financial capital,” says Om Ahuja. Adding to this advantage, developers are presently more inclined to offer discounts because to their continuing liquidity challenges. “Apart from the advantages they have due to the depreciating rupee, developers are more than willing to offer discounts today owing to their on-going liquidity concerns,” says Om Ahuja.