Indian Real Estate: NRIs Fuel The Realty Boom

What is the first thing non-resident Gujaratisthem a home away from home for the two
(NRG), whether UK or USA-based non-residentmonths they visit Gujarat every year. NRG
doing when they set foot in Gujarat? Likequeries and bookings have almost doubled in the
Prakash Patel, who after he setting foot in Bardoli,past couple of years."
barely a fortnight ago, invested Rs. 35-lakhs in aRecently, UK-based Jagdish Patel purchased a
Radha Baug plot of land.3,000-sq. ft. plot in Vadodara's Race Course area,
Ditto goes for New Jersey, USA-based Bhagubhainot just because, he wanted to set up a base in
Patel, who couldn't resist the temptation of pickinghis hometown, but also because the ongoing
up a residential plot at Bardoli's Sona Park, during aboom had him excited about the possible
recent visit.appreciation.
This unprecedented interest shown by NRGs inWhatever, the reasons for NRG investments in
realty back home, has many a real estateGujarat real estate, the fact is that Indian real
developer, even in dusty Saurashtra towns ofestate has come of age. It is the new gold
Rajkot and Jamnagar, not just designing exclusivestandard for Indians dotted all over the globe. As
schemes, but also setting up overseas marketingIndia's economy boom, boomerangs, it is not just
offices to woo the deep-pocketed Diaspora.the West that has woken up to the potential of
"Given the large number of queries we have beenIndian real estate, it is also India's scattered
receiving from NRGs, we decided to launchDiaspora. The world and they are beginning to
exclusive housing schemes in upmarket areas,"realise, while the 19th-century was the British
explains Kishore Kotecha of Rajkot-based DKcentury, the 20th an American century, the
Group, who has conceptualised 'NRGs Only'21st-century is India's century, and once again all
schemes in Jamnagar and Rajkot.things Indian, as well as, being Indian is in fabulous
While Kotecha, who has marketing offices inishtyle. And, that includes owning a second home
Middlesex and Leicester, claims the Rajkotin India.
scheme is already 'house full', the Jamnagar one isAs the West flocks to India, whether for
50% booked up. Atul Sheth of Sheth Builders,off-shoring / outsourcing or for business
Rajkot explains the sudden NRG interest, not justpurposes, the world spread of Indians is shedding
in residential, but commercial property as well, astheir colonial hangover and reverence for all things
such: "While, investment in realty overseaswestern. The colour of money i.e. the booming
provides barely around 5% returns, Indian realtyIndian economy has ensured they have
returns touch the 25-30% mark. And, if theovercome their distaste for all things Indian and
location of the property is good, the investmentthe colonial stigma attached to being a brownie
can even double within two years."from India.
Mega-city Ahmedabad too, is seeing its share ofIt is the Discovery of India by of all things,
action with NRGs investments ranging anywhere(Non-Resident) Indians, themselves! Welcome back
from 10 to 20% in residential schemes.to the homeland! This is the only land; even a NRI
"Their first preference is luxury apartmentscan call home, while many westerners once again,
followed by land and shopping complexes,"including Israelis, like the Brits during the British
explains Rajesh Brahmbhatt of Safal group,Raj, once here, do not want to go back to their
adding, "NRGs stay away from bungalows ashome countries! This is the magic that only India
they are difficult to maintain." Harshad Patel ofcan weave, both on Indian or non-Indian alike! This
Dhara Group with 10% of its client list made up ofancient and fabled land has everyone in its thrall!
NRGs says: "Having their own property also gives