The ‘Non-Resident Hyderabadi’ junta is giving city realtors a hard time. With most of these globe-trotters deciding against investing in real estate this year, city builders are already bracing themselves up for a 40-50 per cent drop in their 2010 earnings. Realtors say that the otherwise lucrative months of July and August, when vacationing NRIs visit Hyderabad, is likely to be drab and non-profitable this time around.

With most countries in the US, Europe and Middle East breaking for summer in July, a large number of Telugus residing there visit their hometowns in the state during this month. Many among them also invest in properties, giving the real estate sector a huge boost, say industry observers. The other buying season is the December winter break.

“We look forward to these two months as a bulk of our NRI deals get sealed during this time,” said Khaja Asif Ahmed, a city realtor adding, “The inquiries for these properties start from April-May. We get calls by the dozens.” But this year, Ahmed has not received a single call so far.

Interestingly, even the drastic slash in property rates has not helped realtors lure these NRIs. The Hi-tec City-Kondapur-Miyapur belt which witnesses maximum action, thanks to these cash-rich Telugus, has failed to make any buzz this time. “The places beyond Hi-tec City attract most of the NRI investments. Areas like Kukatpally and Dilsukhnagar too get a lot of customers,” said Venkateshwar Rao, a Kukatpally-based builder. According to his analysis, this lack of business is the result of the drop in confidence among NRIs about the future of the city. “Hyderabad has seen too much unrest over the last few months. The reason why local buyers are abstaining from putting their money here is what is holding back NRIs as well. The money these people invest is usually two-three times more than what locals so. So they are overtly cautious,” he said.

Industry observers say these missing NRI investments would further hit the real estate sector, which is still struggling to revive post recession and ‘T’ agitations. Considering that this group brings realtors the largest share of annual business, observers fear, that their shying away from the sector can even drop the sales figures of builders to an all-time low this year.

“NRIs play a very prominent part. So compared to our 2007 sales, when there was large-scale buying by these people, this year definitely looks lacklustre. But I am still hopeful,” said Prem Kumar of Doyen Constructions. Agreeing with his colleagues Kumar, however, said that NRIs were instead looking at more stable investments, such as gold, this year.

Apart from realtors, even bankers are likely to miss their NRI customers. For, the property deals sealed in the months of July and August translate into home loans in the following months, bringing them impressive revenues.

Predictably, the business months of September-October that usually registers maximum profits for the banks will see little coming their way this year. “The three months after August is usually the peak time for us. At least one-third of the home loans sanctioned then are for NRI applicants. Their absence from the realty sector will prove to be a dampener for banks too,” said a senior analyst of a leading bank.