NRIs (Non-Resident Indians) can play a significant role in saving the Telangana real estate industry. The industry has been facing a number of challenges in recent years, including a slowdown in demand, rising prices, and a lack of transparency. NRIs can help to address these challenges by providing much-needed liquidity to the market, investing in new projects, and bringing in global best practices.
Telangana’s real estate market can be regarded as the second-highest employment generator in the country after agriculture. Of late, the industry has been sluggish with more than a dozen measures needed to help real estate developers stay afloat. The overall despair cast over the real estate industry on the pretext of the COVID-19 pandemic has brought to light several unconventional methods to keep the dreams of homebuyers alive as developers tiptoe their way towards recovery.
Here are some of the ways in which NRIs can help to save the Telangana real estate industry:
- Provide much-needed liquidity to the market. The Telangana real estate industry has been facing a liquidity crunch in recent years. This has made it difficult for developers to launch new projects and for homebuyers to purchase properties. NRIs can help to address this problem by investing in real estate in Telangana. This will provide much-needed liquidity to the market and help to stimulate demand.
- Invest in new projects. NRIs can also help to save the Telangana real estate industry by investing in new projects. This will help to create jobs and boost the local economy. It will also help to improve the supply of housing in the state, which will make it easier for homebuyers to find affordable homes.
- Bring in global best practices. NRIs can also help to save the Telangana real estate industry by bringing in global best practices. This includes things like using modern construction techniques, adopting green building standards, and providing high-quality customer service. By bringing in these best practices, NRIs can help to improve the quality of real estate in Telangana and make it more attractive to buyers.
NRIs can play a significant role in saving the Telangana real estate industry. By providing much-needed liquidity to the market, investing in new projects, and bringing in global best practices, NRIs can help to revitalize the industry and make it more attractive to buyers.
Real estate had been lamented in recent years in Telangana. The startling demonetization followed by the introduction of the GST regime, the RERA Act, and followed by the NBFC crisis collectively propelled real estate players to their lowest ebb.
Adding fuel to fire was the COVID-19 pandemic where real estate giants faced massive unavailability of workers due to the migrant exodus, and disruption in the supply chain of materials, thus resulting in numerous deferred projects and delayed delivery dates. The income contraction among the masses muted the demand, whereas a massive liquidity and labor crunch impacted the supply side of the industry.
However, the government introduced a series of measures including the moratorium on equated monthly installments, restructuring of loans of real estate companies at the project level, and setting up of Swamih fund – rescue capital for affordable and mid-income housing projects, etc. While these relaxations may not have addressed issues at the grassroots level, this backdrop turned out to be favorable for the Non-Resident Indians (NRI).
During the pandemic, NRI’s turned towards Telangana in large numbers on the look for real estate for the purpose of working from home and also for investment/s. The ‘Work from Home’ culture strongly contributed to this phenomenon and with home offices gaining traction, the ‘Work from anywhere’ phenomenon was leveraged by thousands of NRIs.
Despite the sluggish economy, the confidence in the real estate facilitation and recovery mechanisms such as RERA, Insolvency and Bankruptcy Code, etc. has played a major role in enticing NRIs to the distressed yet well-regulated industry. In fact, real estate transactions falling under the purview of the Foreign Exchange Management Act (FEMA) have been further simplified to attract foreign investment.
Further, in absence of a cap on the number of properties an NRI can purchase, they can easily cash in on their investment in property by renting, leasing, selling, etc. As a result, NRIs are investing in multiple properties and getting high returns on investment through rental income, leasing income, and short-term and long-term capital gains.
However, despite the potential downside NRIs traditionally preferred investing in the residential real estate segment owing to a good return on investment, reasonable capital appreciation, and low rupee value. They are one of the crucial growth drivers and the overall community accounts for a sizeable part of Indian real estate demand.
Therefore, it goes without saying that NRI money helps increase the purchasing power of people in India, which in turn stimulates the market and pushes demand and supply upward.
This development is likely to have a two-fold effect wherein both NRIs and real estate players may benefit from the trend and eventually become a part of the growth story of their own country, however, a pressing question is whether the Indian market will be leveled to the extent that the NRI’s will be able to resale their properties?
Irrespective of what the future holds, real estate cannot solely rely upon NRIs to pull them out of the COVID-induced doldrums but can definitely be treated as one of the first steps towards growth and revival.
The real estate industry’s performance is influenced by various factors such as market conditions, government policies, infrastructure development, and economic stability.
NRIs can contribute to the real estate industry in Telangana in several ways:
- Investment: NRIs can invest in properties in Telangana, which can provide a boost to the industry. Their investment can help generate funds for new projects, increase market liquidity, and create employment opportunities in the construction sector.
- Demand: NRIs who decide to settle in Telangana or purchase properties for residential or commercial purposes contribute to the demand for real estate. This can help in stabilizing property prices, stimulating the housing market, and encouraging developers to launch new projects.
- Expertise and knowledge transfer: NRIs often bring valuable expertise and knowledge from their experiences in other countries. They can introduce best practices, innovative technologies, and modern construction techniques to the real estate industry in Telangana, which can lead to improvements in quality and efficiency.
- Remittances: NRIs sending remittances back to their families in Telangana can indirectly contribute to the real estate industry. These remittances can be used for property purchases, renovations, or construction, thereby supporting the overall growth of the industry.
However, it’s important to note that the real estate industry’s revival and sustained growth require a comprehensive approach that involves multiple stakeholders, including developers, investors, government authorities, and local buyers. The industry’s success depends on factors beyond the influence of NRIs alone. #hydnews #khabarlive
