Track2Realty Survey: The job losses of the NRIs won’t bring them back to India and fuel their investment into the Indian property market.
A perception has gained ground that the NRIs (Non Resident Indians) losing jobs in the US and other parts of the world have no choice but to land back home and invest in India’s housing market. The ground reality, however, is that these expat Indians don’t think this is a logical conclusion, finds a global survey by Track2Realty.
Nearly two third NRIs, as many as 62%, would wait & watch for the next few quarters. 54% are not convinced with the short to medium term economic growth prospect of the country. Even larger number, 74% feel it is not wise to get stuck with the investment in the Indian property market.
These are the findings of most comprehensive global online and off-line survey by Track2Realty, the real estate think-tank group. Track2Realty conducted this survey online, and then its global alliance partners also conducted off-line sampling.
The NRIs from the US, UK, Middle East, South Africa, Canada, Australia, New Zealand, Malaysia, Singapore and Mauritius participated in the survey. They were given a mix of open-ended and close-ended questions to assess their job prospect and investment choice in the Indian property market. The data was then collated by Track2Realty team to read the mood of the NRIs with regard to their investment choice in the Indian property market.
62% NRIs would wait & watch for the next few quarters even if lose the job
54% are not convinced with the short to medium term economic growth prospect of the country
74% feel it is not wise to get stuck with the investment in the Indian property market.
54% NRIs have apprehension to settle back to India
46% NRIs feel there are still better options in some other countries
Absence of skilled jobs & business opportunists deter as many as 58% NRIs to settle in India; 28% NRIs have blamed absence of lifestyle & quality education to their children; and 14% have other issues
74% NRIs don’t feel it is time to invest in Indian property
60% NRIs maintain Indian real estate is too over priced; 26% cite lack of clarity in the Indian market; 14% are yet not about frequent regulatory changes
68% NRIs fear a price correction, and 32% feel it is a game of long term investment
52% NRIs feel the property investment in Dubai is safer than India
58% maintain that Dubai offers pretty professional level playing field for both employment and conducting businesses
What actually deters these expat Indians to come back home amidst the slowdown in the global market? After all, the policy changes in the USA and some other countries are discouraging foreign employees. Opinion is divided and while 54% of the NRIs have apprehension to settle back to India, 46% of them feel there are still better options in some other countries.
Among those who are not thinking to come back to India absence of skilled jobs & business opportunists deter as many as 58%. 28% NRIs have blamed absence of lifestyle and quality education to their children, while the rest 14% have other issues ranging from peer pressure to long-term career goals.
Do they feel it is time to invest in the Indian property market? Majority of them, as many as 74%, feel No. For a vast majority of the expat Indians who are not betting on the Indian real estate, exorbitant property prices is a big deterrent with 60% clearly saying Indian real estate is too over priced. 26% cited lack of clarity in the Indian market and the rest 14% are yet not sure whether frequent changes in rules and laws would jeopardise their investment.
In terms of the ROI expectations, more than two thirds of the respondents, 68% said they fear a price correction, if not crash. Rest 32% feel it is a game of long term investment and they might get stuck if invest into the property market.
Surprisingly, the majority of the NRIs who have employment issues in Europe, the USA and other parts of the globe, feel Dubai is a better destination than India for both employment and real estate investment.
52% NRIs feel the property investment in Dubai is safer than India as prices are realistic and not prone to fluctuate. Even more in number, 58% maintain that Dubai offers pretty professional level playing field for both employment and conducting businesses.
A substantial number of NRIs, as many as 44%, are pretty sure that the global job uncertainties are temporary and cyclic in nature. 48% have apprehensions that exit from the Indian property is a dicey proposition, if tomorrow they would get a better job abroad. And 64% even maintain that the country can’t give them employment of choice even if they settle back in India with a locked investment like the home purchase.
The survey definitely is not music to the ears of the Indian developers for whom NRI clientele is always on top of the mind. Their wishful expectations of NRIs job loss translating into their real estate investment back home does not seem to be realizing.