India is the world’s biggest property market, with an estimated turnover of around $2 trillion a year.
But many buyers and sellers of property in the country do not take into account the value of the property, or the fact that their investments are subject to foreign exchange risk.
A recent article by The Times of India, a leading English-language daily, has revealed that property market experts from the US, UK, Australia and China are all recommending that Indians should invest in property.
The article, which is being republished in the national edition of The Times, is based on a survey conducted by a real estate consultancy firm and has garnered considerable attention in the media.
In addition to the survey, the report is being widely shared on social media.
In the survey conducted last month, which covered 20,000 real estate professionals, 51 per cent of the respondents stated that they would recommend an Indian property company.
Of the other two options listed in the survey (Bengaluru-based Property Property Company and a property company in New Delhi), only 16 per cent chose the former, while the remaining two respondents chose the latter.
In a report released in April, PricewaterhouseCoopers, which advises foreign companies on valuation and investment strategies, said that India has the highest number of “buyers” and “sellers” in the world, with about 30 per cent people who are looking to buy property and 30 per percent looking to sell it.
According to the report, there are about 4.5 million properties in India.
For the survey respondents, property investment was considered to be a good option for both buyers and the seller.
In fact, more than half (56 per cent) of the survey participants said that they consider it a good investment option, while another 23 per cent said they considered it to be bad investment option.
Of the four options mentioned in the study, only two of them are good investments: buying and selling.
Only the first option was considered by the respondents to be “good investment” option, with 56 per cent saying that it was a good buy option.
Only 13 per cent felt that it would be bad for the seller and another 11 per cent considered it a bad buy option, according to the PwC report.
Another option suggested by the survey was “buying and selling”, with 55 per cent respondents preferring it as a buy option compared to 44 per cent who felt it was bad investment choice.
However, this option was recommended by only three per cent among the respondents, who felt that buying and Selling was a bad investment.
Another factor that was mentioned in both the survey and the PWC report is the foreign exchange rate, which the respondents were divided on.
While more than one-third of respondents said that foreign exchange rates are “good” or “excellent”, while only 13 per the respondents felt that the exchange rate is “bad” or has “a negative impact on the seller”.
“The survey results reveal the extent to which the Indian real estate market is vulnerable to fluctuations in the foreign currency exchange rate.
In the Indian market, foreign currency inflows and outflows are likely to be more pronounced in the first half of next year,” the report said.
The study was conducted by Nihal Gupta, managing director at Bhattacharya Real Estate Advisors Pvt.
Ltd., and Amit Singh, a partner at Bhatacharya.
It is based off a survey carried out by Nippon Property Management in 2016 and has been widely shared by various media outlets.
The authors, however, stated that the survey is not necessarily an endorsement of the properties offered by any of the companies listed in this report.
“The survey was conducted to provide a more accurate picture of the overall Indian real property market and not as a recommendation to buy and sell property.
For example, there may be multiple companies offering property across the country,” the authors stated in the report.