Indian real estate has seen a shift in interest from NRIs recently, with many now hesitant to invest due to the increasing value of the US dollar against the Indian rupee.
In just a couple of months, the exchange rate surged from Rs 83 to Rs 87, diminishing the returns NRIs are seeing on their investments.
While their investments in rupees have shown some growth, the pace is slower compared to the rapid appreciation of the dollar.
Many NRIs now believe the dollar could soon cross the Rs 100 mark and have decided to wait until the exchange rate stabilizes before committing to investments in India.
They feel that once the dollar value levels off, they can reassess the market and decide to re-enter.
However, experts suggest that the situation might have the opposite effect.
As the dollar continues to rise, Indian real estate could appear more affordable to NRIs, leading to a surge in investment.
This increased demand could cause property prices to skyrocket, making it more expensive than at present due to the classic demand-supply imbalance. The rise in property prices could fuel inflation, affecting the broader economy.
Finance Minister Nirmala Sitharaman has emphasized that nothing is challenging Indian economy except the dollar value.
As this currency shift continues, the economic impact may become more pronounced, affecting everything from real estate to inflation in India.
