SINGAPORE: NRIs have an advantage in luxury property market in India post-demonetisation as real estate developers in major cities of the country have “significantly” dropped property rates, according to Singapore-based business analysts.
“Given the recent demonetisation move, property rates have significantly dropped across various cities in India,” said Abhijit Ghosh, India Desk leader at PricewaterhouseCoopers (PwC) Singapore, an international financial consultancy.
“Specifically, the luxury condominium range of property apartments has been badly hit given that one of the objectives of the current demonetisation move is to discourage all significant cash transactions,” said Gaurav Tijoriwalla, Manager, PwC Singapore.
There has always been a trend for NRIs to invest in Indian luxury condominium apartments in the metropolitan cities of India, particularly such as Mumbai, Delhi, Bangalore and Chennai.
Industry observers said Chennai-based developers are cutting prices by up to Rs 20 lakhs on slow-moving projects.
“Experts believe that we can soon expect a 10 per cent-25 per cent discount in the luxury segment of residential condominiums and also in the upmarket areas such as Nungambakk, RA Puram and MRC Nagar in Chennai,” Ghosh said.
They have also forecasted Delhi property prices to offer 25 per cent to 30 per cent discounts and Bangalore to offer 30 per cent to 40 per cent discounts.
NRI sources expects luxury property prices to drop by 25 per cent to 30 per cent.
Property transactions have plunged significantly in the last month post announcement of the demonetisation programme on November 8.
Bangalore property registrations have dropped to about 200 per day, compared to approximately 1,800 properties before demonetisation took effect, the experts said.
Mumbai is expected to see a 50 per cent to 70 per cent slow down or may even go to a no transaction period.
India’s property enquiry portals, as observed by experts, have seen a significant dip, about 400 people per day asking from erstwhile number of 1500-1,700.
But it seems that the overall market sentiment at this juncture is to wait and watch and make the right move at the right time, they said.
There is no denying that the NRI community will be taking advantage of the situation and explore to invest in luxury condominium residential apartments in India, Ghosh said.