Mr. Sachin Joshi is an engineer in London and is looking to buy property in western India near his home town Pune as an investment.
“I visited four to five developers,” says Mr Joshi who visited a Property Exhibition last week. “There are few names [that I have heard of].” For the developers, it is a cost-effective way of promoting their projects.
The exhibition is among an increasing number of Indian property shows in London that caters to NRIs
During the past few weeks, the rupee has touched new lows against the dollar, making the property market an attractive investment option for Indian expats. But experts say investors as well as homebuyers should have an appetite for risk and do due diligence in researching the developer and visiting the site before buying property.
Homebuyers must factor in an increase in monthly instalments if the rupee strengthens.
The property market in India has remained stable over the past four years. In addition to domestic demand, rampant speculation is less than in other markets where foreign investors have led to an increase in the prices of property.
A good thing in India is the high amount of controls Reserve Bank of India has put in, such as foreigners cannot buy property in India, and banks look at personal income for approving home loans.
But there are still dangers. NRIs looking to invest in property back home need to do their homework. It is difficult for exhibition organisers to check each developer, so the advice is try and find out about the company yourself.
Investors should also conduct their own due diligence and look at past projects from developers they are interested in.
An investor should also do a survey of other developments within the vicinity of his proposed investment to ensure that the area has a real estate potential. Evaluate whether the project has been pre-approved by a reputed lending institution.
If you need any advice or assistance in India Property Investments, feel free to contact the Unesta team on 0207 127 0411