Gulf Sotheby’s International Realty Agent (SPF Realty Agent prior to the acquisition) comments on the economic state across GCC countries in an article on Real Estate Investments that came out in Forbes Middle East.
This article was originally published in Forbes Middle East Guide 2017 by Hina Navin, on pages 76,78.
Every year, non-resident Indians (NRIs) living in the GCC pump in significant amounts to India’s property market. As alternative investment hubs emerge, developers are upping their tactics in keeping the NRI investors content.
Economic State Economic growth is expected to improve in 2017 across GCC countries, according to the global and regional economic outlook and sector analysis, says Suraj Poon, senior property consultant, Gulf Sotheby’s International Realty (previously SPF Realty). “The study shows that U.A.E.’s growth will pick up in 2017 to reach 2.5%, up from 2.3% in 2016 because this country is more diversified from oil than its neighboring GCC countries.”
“While the current situation is on its way towards improvement in the GCC, this provides NRIs with the perfect opportunity to explore options back home due to improved measures that were taken by the Indian government to reform and regulate the real estate sector. The union budget for 2017 has emphasized clear and transparent guidelines to attract further NRI investments,” he says.
Also, post demonetization, the surplus liquidity in the banking system has reduced borrowing costs, which in turn will boost the economy, he adds.
India’s booming real estate market too clearly values the NRI funds as they offer various incentives to lure in these overseas Indians. Poon says, “Lately, developers have offers of extended payment plans, offers to waive stamp duty and registration charges, VAT, service tax and floor rise premium – all of which translate into an actual saving on the cost of the property. The most popular offer amongst NRIs has been purchase price assurance whereby the buyer will be compensated in case the home price comes down within the next three/six months.”
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