Since the investors making investments in Indian retail sector
has become conscious about putting in the volatile equity market
at current levels, Non Resident Indians (NRIs) are taking a contrarian
stand towards the same.
Nowadays, NRIs seem to be changing their mindset about making
investments in Indian real estate. They have invested a whopping
100 crore, in less than two months of the current calendar year.
Contrary to this, NRIs had emerged as net buyers at less than
Rs 8 crore in 2006. Connoisseurs feel that the corrections witnessed
in the past few years have made NRIs bullish on the Indian real
estate market. However, they are looking towards reinvesting.
Data complied by surveys clearly show that NRIs have been taking
out their money, with the concerns such as high rupee-dollar rate
and valuation on mind. All these factors have forced them to reconsider
their decision to invest, says the head of brokerage with a sizeable
overseas presence.
Although, the value of rupee has increased over the last few
months, the corrections witnessed in the equity market have led
NRIs to add to their investments, he adds. However, the situation
was not the same earlier, when the value of rupee was also appreciating
and the equity market was also not flourishing.
Real estate is one sector that NRIs have developed a liking for,
said a research analyst with a domestic brokerage. Most NRIs from
the Gulf region seem to be eternally bullish on the infrastructure
sector and ready to invest in any of the real estate companies.
In addition, many of the first-time investors also prefer technology
stocks, he added.
Since the past few years, NRIs have shown a large inclination
for Indian real estate. But the real craze for Indian property
market can be seen among NRIs from the Gulf region, and are willing
to invest in any of real estate companies. Also, the increase
in foreign direct investment the country is receiving serve as
an encouraging factor for most brokerages new-found partiality
for the Gulf region.
