Impact of Covid on NRI Buyers in South Delhi Real Estate

With the Coronavirus pandemic having a gloomy impact on stock markets, from equities to currencies, and ROI becoming negative, the security of owning one’s own home has become the Best ROI, which would make NRIs to get attracted towards South Delhi floors and homes. In 2018, according to a World Bank report, India received $80 billion in remittances, which included nearly $13 billion worth of investments in the real estate sector representing the interest of NRIs in Indian Real Estate. With falling rupee, opportunities back home become more appealing to NRIs. South Delhi Luxury homes have always been targeted by the NRI communities of London, Singapore, Dubai, which thinks of coming back to India or at least want to have their roots always connected with their home country. In addition to NRIs established in above countries, a lot many NRIs from countries such as the USA and Europe will also focus on the stable markets as South Delhi. The current situation gives the NRIs an ideal opportunity to secure a luxurious home in a prime market like a posh colony of South Delhi that they are familiar with. Most of the NRIs from North Indian origin understand that South Delhi is one of its kind market which holds  highly aspirational sentiments , which makes it a dependable market.

At Southdelhiprime.com, a venture of SanD Advisory Private Ltd, we have earned the reputation of being South Delhi’s most Innovative Real Estate Firm – and go-to specialists for NRI buyers, sellers, developers, landlords and companies around the world looking to establish themselves in India & for Indians considering business expansion in South Delhi.

The stock market has corrected massively in the past few days, making NRIs shift their focus on other preferred & safe asset classes like Real Estate, Gold, and Bank Deposits.

After analyzing the current market situation, Doctorproperty.in, our research partner believes following could be the possible factors contributing to increase in NRI interest into south Delhi real estate markets especially like South Delhi Luxury Real Estate vis-à-vis Gold and bank deposits:

Real Estate vs Bank deposit

Interest rates on Saving account deposits have fallen considerably in the past few months, with current saving deposits rate at 3%. Fixed deposit rates have also taken a similar plunge with SBI FDs of one year and above tenure earning only 5.9% – the lowest since 2004. These low deposit rates will make NRIs wary of keeping their money with banks and they would look for alternative opportunities like Real Estate for investments back home. 

Real Estate vs Gold

COVID along with fluctuating oil prices has resulted in wide fluctuations in Gold prices in the past few days. These wide movements in Gold prices have made it a little risky investment these days. At the same time, Real Estate prices are all-time low due to slug caused by the lockdown. For NRIs, looking forward to returning to India in the long-run, this represents an ideal opportunity to secure their dream luxury property in a posh colony of South Delhi. Not all NRIs have an inherited property to depend on, so they generally establish a certain share of purchasers of Indian real estate.

With the (a) rupee being all-time low & (b) expected mass employment cuts in the US and Europe, there is a surge in the enthusiasm of NRIs to purchase real estate properties in India, particularly in the posh colony in South Delhi like Vasant Vihar, Westend, Anand Niketan, Golf Link, Greater Kailash, Panchsheel Park. NRIs who had lost positions or were in a flimsy situation because of changes in US movement laws were currently effectively searching for properties in the South Delhi.

Doctorproperty.in, our online research expert, believes future outlook for NRIs would be:

• According to Dr. Property projects by reputed builders/developers that are attractively-priced would get NRI attention at this time, as those would see good appreciation in the mid-to-long-term along with the guaranteed quality of the property.
• NRIs being away from the home market would rely on a trusted & credible real estate advisor like SanD / Southdelhiprime.com to guide them and get the best quotes. 
• NRIs would avoid traveling in the immediate future and would prefer a digitally-enabled real estate advisor offering 3D brochures, virtual tours of property & walkthroughs with all-time availability of zoom or Facetime video conferencing to match different time zones. Southdelhiprime.com has been doing virtual tours over Zoom & Facetime of our luxury properties in South Delhi for our clients. 

We understand that though virtual show grounds are good for a preliminary showing but knowing the neWe understand that though virtual show grounds are good for a preliminary showing but knowing the neighborhood is equally important to make the final decision. Considering the importance of neighborhood, SouthDelhiPrime.com has developed a Know Your Colony (KYC) tool providing details about all the posh colonies of South Delhi like Vasant Vihar, Westend, Anand Niketan, Golf Link, Greater Kailash, Panchsheel Park.  along with the layout details of each colony and the amenities close by. Our Builder Selection Matrix tool along with detailed information on all active developers in the South Delhi market will further help our clients in choosing the right builder for their dream property.

Currently, a good mix of ready-to-move-in luxury properties is available in South Delhi. Lockdown presents a good opportunity for NRIs to invest their time in finding the ideal home and make the informed decision by digitally exploring all possible options.

Instead of worrying about what you cannot control, Shift your energy to what you can create!