Even as the nation is worried over the sliding value of rupee, Non-Resident Indians (NRIs) are waiting for the value to drop further to make investments in real estate back home. With the NRIs holding back for now, transactions in the real estate market in coastal districts have turned sluggish.
According to market analysts, NRIs are closely monitoring the situation in the hope that the value of rupee against the US dollar may go down further. "Though the current value of rupee at about Rs 68.80 against US dollar is very attractive, they are still holding their dollars back to gain more in the coming weeks," said Ch Sudhakar of Vijayawada Builders' Association. Sources said NRIs from Krishna district have asked their family members here to identify some areas to invest in the coming weeks. Even a minor variation in rupee value will make a lot of difference for NRI investors in real estate.
However, the continuous agitations over bifurcation of the state have hit the market as investors are wary of putting their money in the Vijayawada and Guntur markets, where the prices are already touching the sky. Investors fear they may not get returns even if the capital of the new state is located in the vicinity. The price hike in these markets started immediately after the Congress high command announced the formation of Telangana state and big realtors from Hyderabad started eyeing the cities that may turn out to be the new capital. But the situation changed as the Samaikyandhra stir intensified, especially after the APNGOs went on an indefinite strike. The political situation too is unclear, what with the Seemandhra leaders exerting all possible pressure on the Centre.
"In fact, the market has already reached its peak in coastal districts where the prices are relatively on a higher side. It may not attract new investors," said realtor Guduru Chandrasekhar. He said the market may pick up only after a concrete announcement on the new capital. Though there is talk that the new capital may be located somewhere between Guntur and Vijayawada, investors are shying away from parking their money there fearing that prices are artificially hiked. Builder Raja Lingam said the market may take a jump if the rupee value settles at some point from the present levels. He said the stability of rupee is vital to attract investments.