Indian realty market and NRI

While home turf may not look as lucrative to resident Indians in times of a sluggish real estate market, Non-Resident Indians (NRIs) are still betting big on the realty sector. In fact, the NRI contribution to overall residential sales has amounted to approximately 10% of total sales over the past six months. Cities such as Pune, Mumbai, Chandigarh, Gurgaon and Kolkata are drawing the highest number of serious inquiries. What has contributed to the bullish sentiments for the Indian realty sector is the the negative economic patterns reigning across most developed countries. Plus sentimental attachment for one's country of origin and attractive returns from an emerging economy make NRIs turn immediate attention towards India. According to global real estate consultancy Jones Lang LaSalle Meghraj (JLLM), 10% represents a significant growth and indicates that India, despite the economic pressures, is still a desirable country to invest in. "It is no secret that the real estate market will soon permit low entry costs and high returns after the current property cycle is completed. Developers are responding to the demand," says Anuj Puri, chairman and country head, JLLM.