Ascend in the sales enquiries, owing to NRIs amid COVID-19
The COVID-19 pandemic had hit most of the sections of the realty sector, but one such segment can be noticed to have transcended the sales enquiries. Real estate companies are witnessing an enormous increase in the number of queries for purchases from non-resident Indians (NRIs), especially from those based in the Middle-East. According to a report by Business Standards, this hike in the requests can be mapped to the eventful return of the NRIs from the Gulf Cooperation Council (GCC) region amidst the COVID-19 lockdown.
In the report, they also mentioned that 25 per cent of the total of the 150000 Indians who have deported back from United Arab Emirates (UAE), have reported to have lost their jobs following the COVID-19 pandemic crisis. Developers believe that several other factors are leading to this uptick. One such prominent reason could be the falling prices of oil in the Middle-East countries and the related job losses. “The oil-based economy of GCC markets is experiencing one of its worst downturns ever. So, the returning tide of the workforce is investing in this security blanket in the domestic market,” said Kamal Khetan, chairman and managing director of Sunteck Realty, a Mumbai-based developer.
According to Godrej Properties, GCC customer sales during April and May this year amounted to nearly half of what they were during the last financial year. A total of Rs 473 crore worth of sales was recorded from the GCC markets. Similar to this, another Bengaluru-based company, named, Puravankara touted to have sold 50 units to the GCC buyers in the last 2 months amidst the lockdown. “Along with the futuristic product offerings, technology-driven amenities such as smart homes, outdoor air purifiers and themed projects are attracting customers,” Puravankara said. Similarly, another Bengaluru- based Brigade enterprises, observed sales worth Rs. 15 crore from buyers in the Gulf. They also are expecting a rise in sales in a particular segment by 20 per cent in the present FY20. Vikas Oberoi, chairman and managing director at Oberoi Realty, confirmed the increase of sale enquiries by 30 per cent in the GCC markets. “The favourable exchange rate on the back of the sliding rupee against the dollar has, of course, improved affordability for them. But that is just one side of the story. Many NRIs are in the process of returning to India and want to secure a home here,” said Anuj Puri, chairman of Anarock Property Consultants. He also confirmed that out of the total services provided, 35 per cent of it is focalised to serving the GCC costumers.
Thus, this spike in the sale enquiries in the GCC segment can prove to be a golden opportunity to boost its form. This can help the growth in a long run. Henceforth, prioritising this, there should be introduction of special schemes to help increase the sales.
- Ahmad, Raghavendra Kamath & Samreen. “Realty Firms See Jump in Enquiries and Purchases by Gulf-Based NRIs.” Business Standard, Business-Standard, 3 June 2020, Link