Experts believe the rupee's recent record low presents a potential investment opportunity for Non-Resident Indians (NRIs) and Global Capability Centres (GCCs). While firms like KPMG, Emkay Global, CRISIL, and Anarock see a chance for gains, they warn that continuing depreciation could pose risks.

Anarock, a real estate consultancy, highlighted that a weaker rupee makes Indian properties more affordable for investors converting foreign currencies like the dollar or pound. This presents an attractive opportunity, with the potential for future value appreciation if the rupee strengthens.

However, there are concerns. Santhosh Kumar, Vice-Chairman of Anarock Group, pointed out that while a lower rupee benefits foreign buyers, it creates challenges for NRIs earning in rupees. High property prices and the risk of further currency fluctuations could affect investment returns, adding uncertainty and financial risk.

KPMG noted that a falling rupee acts as an incentive for NRIs to invest in the real estate market, allowing them to either secure larger properties or spend less in foreign currency. The growth of professional real estate agencies in India is also improving property management services, making it easier for NRIs to manage investments from abroad.

Chintan Patel of KPMG raised concerns that continued depreciation might erode investment value when it’s time to repatriate funds back into stronger foreign currencies, like the dollar. He also pointed out the significant transaction costs, including registration and stamp duties, that come with real estate investments.

CRISIL projected an increase in GCC investments due to the weaker rupee, particularly in high-end luxury residential properties and office spaces. However, Aniket Dani from CRISIL also cautioned that the rupee’s depreciation could increase input costs, such as steel and cement, impacting real estate supply and affordability, particularly in the mid-to-affordable housing segment.

Riya Singh from Emkay Global Financial Services suggested that favorable real estate measures in the upcoming budget could drive infrastructure growth, but noted that a further decline in the rupee could be expected, possibly hitting 87 against the dollar. The rupee has already depreciated by 3.79% from Rs 83.19 to Rs 86.47 between October 23, 2024, and January 23, 2025. Other currencies facing similar declines include the Indonesian Rupiah, South Korean Won, and Japanese Yen.

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