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Banking on the NRI influence
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Non-Resident Indians have for generations been an integral part of Malabar’s social milieu. Overseas remittances, especially from the Gulf, have sustained the region’s economy for years now. The real estate sector too has enormously benefited from the NRI factor, writes Biju Govind.
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– Photo: S. Ramesh Kurup
Dreaming high: The NRI factor has laid a strong foundation for the real estate sector in Kozhikode.
Non-Resident Indians (NRIs) have been enormously contributing to the growth of real estate industry in Kozhikode city. Their participation exceeds 70 per cent in major projects in the city as well as its suburbs in the past five years.
One of the factors is the huge remittance from Gulf nations. The average Malayali’s dream to have a roof over his head in his hometown is another aspect.
The business in the real estate industry overall crossed Rs.1,500 crore in the city in 2007. Around Rs.500 crore to Rs.600-crore business was done in the apartment sector itself.
Disposable income
“Expatriates have disposable income to be invested. But it is not only in an investment point of view they have contributed to the growth in real estate sector. Many have purchased apartments for purely residential purpose. But it might not be for immediate occupancy,” says James Augustine, head of Southern Investments (Si) in Kozhikode.
The main clients of Si are NRIs in the Middle East. The clientele ranges between 60 and 70 per cent for various projects.
The upper crust of the Gulf emigrant population invests in flats because the rate of interest in banks is low.
Apart from that, buying property in other nations is rather expensive and involves stringent regulations too, he says.
Agrees, M.A. Mehaboob, director of hi-lite Builders. “The NRI influence is tremendous although local clients, particularly the new generation, have also contributed to the booming sector.”
“Another reason is that many of the professionals residing in interiors of the district have migrated to the city. Others have purchased flats as a second home in the city,” Mr. Mehaboob adds.
IT influence
The opening up of the service industry such as bank, insurance and telecom is having a big impact on the growth of the realty sector. Those employed in Information Technology and Information Technology Enabled
Services in Hyderabad, Chennai and Bangalore are now keenly investing in projects in the city.
Among the NRI clients are the Gulf returnees. “Many relocate to the city for the higher education of their children. Many believe that their children need to undergo higher education in institutions in the State,” Mr. Mehaboob says.
Apartments give a feeling of security and world-class facilities. “We want to give the NRIs the housing facilities they had enjoyed in Gulf countries,” he says.
The hi-lite Builders has launched a new project, hi-lite Metromax, on the new Bypass Road, 1.5 kms south of Thondayad Junction in the city in January.
The Rs.80 crore- project will be a premium, multi-storeyed lifestyle apartment aesthetically designed, beautifully landscaped and comprising a gamut of modern amenities. It will have 2 floors, four towers and 272 apartments.
Mr. Mehaboob says that Metromax will have a jogging track, four well-furnished guest suites, centralised cooking gas system and indoor and outdoor party halls.
Other features include health club, swimming pool, crush, Ayurvedic treatment centre, beauty parlour, hair saloon, food plaza, business centre, cyber café and vehicle access controlled security system.
“We have also made provisions for several banks to set up their ATMs,” he says.
Good response
Mr. Augustine says that the ongoing projects of Si in the city Wood Briat at Chalappuram and Camelot Point on Panicker Road are getting a good response from prospective NRI buyers. The Wood Briat is a 24 apartment project while the Chamelot Point has 50 units.
The Camelot Point is half a kilometre from the beach. It is easily accessible to Kannur road, well-known educational institutions, restaurants, banks and shopping malls. The Gothic style of architecture popular during the 12th century is one of its features. This epitome of quality, built on a flawless, perfectly rectangular plot has 14 floors with two and three bedroom flats.
All the apartments have vitrified tile flooring in living and dining rooms, emulsion paints for internal walls and enamel paint for windows and doors and grills.
The doors will be hard wood with moulded shutters. There will be back-up generator for two lifts, common lighting, water pump and predetermined points in each apartment.
The total area of the flat is over 1,500 square feet. Units are priced in the range from Rs.28 lakh to Rs.35 lakh, Mr. Augustine says.
Enquiries
Almost all leading property developers have established offices or franchises abroad, especially in Gulf countries. Some clients visit the sites during the vacation or holidays. Many seek online enquiries.
Others prefer to take advice from relatives in the city, he says.
The Calicut chapter of the Kerala Builders Forum (KBF) feels that the real estate sector is growing at a fast pace on account of the influence of NRI populace.
It is poised for higher growth in the next five years despite several shortcomings, says Mr. Nityananda Kamath, its secretary.
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