John

Nagpur’s realty market is hot with prices shooting through the roof.

The realty frenzy is crossing the seven seas in Nagpur. More number of Non-Resident Indians (NRIs) are buying properties here - a trend that has fueled realty prices in the past year. The developers and real estate brokers are also on the move to tap a large base of NRIs, who’ve their roots in the city or region.

Thousands of deals are struck every day, and vast stretches of agriculture and non-agriculture developed land are changing hands. About 20 per cent of our clientele is from outside India. Most of the NRI customers are originally from Nagpur, but others are also buying.
Currently, the NRI investment in the city real estate is quite robust, which contributes to the price rise. Many real estate brokers and agents make trips abroad to hold marketing fairs to attract the NRI investors from Middle-east, UK and even the US.

Thousands of buyers allured by the city’s growth potential are queuing up to buy land, house or a flat in and around Nagpur. The ambitious international cargo hub project is also fueling the interest of investors. Many software companies are also setting shops in the town, which would bring in a new work force of professionals. That’s another factor for a surge in property demand.
Developers and real estate brokers feel affordable prices; land availability, better appreciation and lesser bottlenecks are among the crucial factors for the NRIs to invest heavily. An improved air-connectivity is an added advantage.

The publicity spreads by the word of mouth. Much of it is speculative buying, but some NRIs are buying land with future considerations. Almost 25 per cent of the bookings are by NRIs. Internet is proving to be a tool in facilitating the deals. Many of the property are advertised on the realty-websites and get good clients from abroad, who give power of attorney to their relatives here for the registration of deed.

Obviously, the stamp duty collections on registration of sale deeds in rural areas of the district have also shot up. The duty collected from Nagpur-rural area was about Rs 25 crore in the 2005-06 as against Rs18.6 crore collected during 2004-05. The figures for the 2006-07 are not available yet, but rough estimates suggest a phenomenal 40 per cent rise.