The rupee fall may be an opportunity for new investors in property but is also a problem for those already invested. NRI investors who had put in money in Indian real estate due to the high returns are suddenly finding the returns eroded. NRIs who hold premium properties are getting jittery and many have started selling.

Though property prices in prime areas have been rising consistently, the problem is that after the fall in the rupee, their returns have fallen to 10-15 per cent or less. As returns decline, with extent and time horizon uncertain, some of these investors look to shift to safer zones.

Mudassir Zaidi, Regional Head, North, Knight Frank, says after the rupee’s sharp fall NRI investors were in two minds, “whether to stick around or exit.” He believes as NRIs are unsure how long the rupee would continue to fall, they are evaluating options. “After the rupee broke the psychological barrier of 60, there is a clear uncertainty on whether it will fall to 65-70 or more and how long it will continue to languish at these levels,” says Zaidi.