Non Resident Gujaratis Shying Away from Bank Deposits- Investing in Real Estate
Non-resident Gujaratis (NRGs) are turning smart investors. Not comfortable with bank deposits that give them returns in the range of just 8%-9%, they are diverting their money to real estate. Data shows NRG deposits in banks have fallen in one year between September 2009 and September 2010, indicating that money is being slowly diverted to realty. Of the total 26 districts in Gujarat, banks have witnessed fall in NRG deposits in 15 districts, particularly in central and south Gujarat.
Experts and bankers believe that this is because NRGs are diverting their money to real estate where appreciation is much faster than bank deposits. In past one year, the NRG deposits have fallen in the districts of Ahmedabad, Amreli, Anand, Vadodara, Bharuch, Valsad, Gandhinagar, Jamnagar, Junagadh, Kheda, Mehsana, Narmada, Navsari, Sabarkantha and Tapi. Except for Dangs and Surat, all other districts in south Gujarat have witnessed a fall in NRG deposits.