Depreciating Indian rupee has sent shockwaves in the Indian economy. While the impact of this depreciation on Indian real estate market is yet to be fully visible, self regulatory bodies such as NAREDCO are coming forward to do what they can while the economic damage seems reversible.
An autonomous self-regulatory body, NAREDCO (National Real Estate Development Council) last week appealed to all Indian real estate developers to maximize their consumption of domestic building construction material. The appeal was made in wake of depreciating Indian currency. Over the last few months, Indian rupee has experienced phenomenal depreciation.
Every year, Indian real estate developers import building construction material worth around 10 billion US dollars. NAREDCO’s Vice President, Mr. Sunil Mantri appealed to real estate developers to cut down their consumption of products manufactured outside the country.
Indian real estate developers purchase construction materials as well as expertise. Payments for such purchases are made in dollars. According to Mr. Sunil Mantri, measures such as cutting back on import of expertise and tangible products can help strengthen the Indian economy by arresting the depreciation of Indian rupee to some extent.
Real estate developers who’ve commissioned luxury projects in different Indian cities and upcoming urban settlements are usually the ones who spend as much as 30 to 50 percent of the total project cost on importing different materials. Using Made-In-India or domestically manufactured materials as well as expertise (design, architecture and consultancy, for example) can therefore go a long way in improving the financial condition.
While the ongoing depreciation in Indian currency may help Non-Resident Indians to buy property in India, it’ll sure make things a little harder for the rest in future. As banks and other financial institutions start taking measures to insulate themselves from possible damages in future, property prices are likely to increase. Most real estate experts opine that buying property at this time can actually turn out to be a smart investment decision in the long run. Whether real estate developers find it possible to maximize their consumption of Made-In-India materials or not, aspiring buyers would sure need to respond quickly to the transient financial situation and make the most out of it.