The NRI season is now at its fag end. Despite undertaking
tours to the US, the UK and Middle East and doling out freebies and
discounts, realtors have been unable to catch the attention of this
cash-rich community. NRI investments in India-based properties dropped
by over 50% this season, with the four metro cities and "NRI-heavy"
mirco markets in states like Gujarat and Kerala being among the worst
hit.
"Compared to last year, the drop in NRI interest in India-based
properties has been almost 50% in all sectors. The metros showed a sharp
drop in demand, largely owing to the steep prices", says Sanjay
Dutt, CEO - business, Jones Lang LaSalle Meghraj (JLLM), a global real-estate
consultancy firm. "Very few luxury homes have been sold as compared
to last year", he adds.
At a time when the domestic demand in micro-markets in Tier-I, II and
III cities began to slump in the third quarter of this financial year,
the developers were hopeful that the demand from the NRIs will pep up
the sentiments in the realty markets.
However, the global slowdown and the resulting slump froze the bullish
sentiments among NRIs. "Though a far-from-spectacular number of
transactions have indeed taken place this season, generalised job insecurity
and a desire to conserve available cash among IT employees abroad has
curbed investment demand for high-end properties, Mr Dutt said adding
that the response was "significantly muted" from the NRI community
this season.
The sharp corrections seen in some larger cities has also led to an
"acute wait-and-watch attitude among NRIs who - just like everyone
else - are now very price sensitive", he explained.
