War brings cheer to realty market

Nirmal Builders managing director Dharmesh Jain claimed that his company has registered a 40 per cent increase in sales in March this year as compared to February, since the war broke out in Iraq. He added that the NRIs believe that investing in real estate in Mumbai, which has hit rock bottom prices, is the safest investment.

Property experts add that post September 11, terrorist attack and the Iraq war, they have been flooded with enquiries. They added that more than the desire to live in a lifestyle that NRIs are used to, the cost factor, quicker transport links coupled with the tranquillity, has made Mumbai a preferred location for NRIs.

Another expert added that with increased transparency amongst the developers, customised houses, competitive pricing and easy availabilty of home are added features that are luring NRIs to invest in Mumbai. Also, there are hardly any other options which would guarantee the same returns as compared to real estate investments.

Maharashtra Chamber of Housing Industry (MCHI) secretary Sunil Mantri added that NRIs are viewing Mumbai with confidence and perceive it as a stable investment. He added, “The NRI investments have increased substantially and we clearly feel that the buying situation will precipitate.”

MCHI member OP Monga added that the government’s rules for acquisition of homes for NRIs in India are also flexible and feasible. Monga said that the enquiries for investments in Mumbai have come for locations like South Mumbai, Lower Parel, Byculla, Wadala, Powai and Juhu.

He added that the rate of interest offered by the banks and housing finance institutions will reduce to five per cent, giving a further boost to the housing industry.

However, the commercial property transactions may see a lull if the war continues for long as the multinational companies are likely to put their investment decisions on hold.