Rupee Depreciation May Boost NRI Investments in Realty Sector

The primary reason is that there are logistical constraints such as identifying the right property, negotiating a deal, being able to repatriate large sums of money in outright purchases and completing all the necessary documentation and formalities during the transaction life-cycle, she said.
"A typical purchase transaction may take a NRI buyer a period of a month to 3 months. During this period, the rupee may strengthen and the notional advantages that could accrue due to the rupee's depreciation could be lost," she said.
Besides, in such a situation, if the purchase is not outright and the NRI buyer needs to either pay in instalments or he is booking an under construction property, there may not be a guarantee that he will continue to enjoy the benefits of a depreciated rupee during the payment life-cycle.
"In the short term, the depreciation of the rupee may mainly benefit those buyers who are already in the process of finalising an existing transaction where they have still not converted their foreign exchange into rupee to pay for their purchase," she added.

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