NRIs in wait-n-watch mode - Ahmedabad

It's homecoming season for NRIs. But this time around, they are not dashing to their neigbourhood realtor to book a flashy second home or retirement villa. 'Caution' has become the catchword. Global real estate consultants and experts feel that the 'only real catalyst' that could pep up the NRI spirit during this lean period is a significant price cut, which is expected to happen in the next 3-4 months.

Only reduced property rates can prompt NRI participation in today's these market conditions, feels global real estate consultant Jones Lang LaSalle Meghraj (JLLM). The Indian real estate market has sparked off a new wave of interest among NRI residential property buyers but they are awaiting a further fall in property rates. Once this happens in the next 3-4 months, we will see increased NRI participation in real terms," JLLM CEO (Business) Sanjay Dutt told ET.

"The promise of a correction in the key metros and tier-II cities has revived NRI interest in the residential market. We expect a number of scheduled transaction to happen by the end of the first quarter of 2009," Mr Dutt said while stating that NRIs will steer clear of investments in retail projects and other property segments in "unfamiliar and historically over-speculative tier-II and tier-III cities".

Source: economictimes.indiatimes.com