Non Resident Indians (NRIs) are one of the richest communities and are always on the lookout for diverse investment options, to optimize and manage their wealth. Real estate is one of the best return on investments in India as compared to most other countries in the world.
So, what makes India such a great prospect for NRI real estate investment?
- Real Estate legislation: Real Estate Regulatory Act (RERA) is likely to stabilise pricing in the real estate sector, leading to a surge in the demand for housing. Developers will benefit as the law has penal provisions for allottees that do not pay on time. Under this ambit, developers will have to submit layout plans, timeline, cost, project details, and the sale agreement with the local regulatory bodies and register their projects timely.
- Foreign Direct Investment (FDI) in real estate: Under the automatic route, the non-resident investor does not require any prior permission from the government or from the Reserve Bank of India to invest in India. Investment are allowed in areas such as development of townships, serviced plots, and construction of built up residential and commercial premises.
- Ease of doing business: Realizing the significance of FDI and the boost it provides to the country’s economy, Prime Minister Shri. Narendra Modi has ensured a superior regulatory environment to attract FDI. To this end, Prime Minister and his government have initiated several schemes and introduced numerous policies such as Pradhan Mantri Awaaz Yojana, simplifying the investment process in India. Unlike earlier, now NRIs are not required to necessarily fly down to India to complete the transaction.
- Price value upsides: A relationship between a country’s economic growth and real estate growth is interlinked. Indian real estate is set to witness a remarkable appreciation in value. According to a recent research by Harvard University, India may become one of world’s fastest-growing economy over the next decade.
- Growing cities: Recently, Government has announced the list of smart cities helping NRI’S to focus on residential property investment. Cities like Bengaluru, Mumbai, Chennai, and Hyderabad are booming due to the good connectivity of transportation and basic amenities.
Both residential as well as commercial properties in India can be owned by NRIs and there is no restriction on the number of properties they can buy. They cannot purchase any agricultural land, farm house and plantation property. However, they can have ownership of such property only if they have been gifted or inherited the property. According to the Foreign Exchange Management Act (FEMA) rules, NRIs can sell any residential or commercial property. However, if they own any agricultural property, plantation or a farm house, it is mandatory that they have to sell it to a resident Indian.
Moreover, IT hubs like Bengaluru, Hyderabad and Chennai boast of great infrastructure in terms of electricity, water, communication and commuting facilities. Mumbai is already seeing an influx of talent and skilled workforce while Navi Mumbai‘s advancement as a growth corridor has increased saturation of the mainland. As a result, NRIs are looking for lucrative returns from new development in these cities where they can expect a handsome growth in capital values.
So, if you’re an NRI looking for the right property and the right brand to invest in, look no further. We are here to help you with the decision. Connect with us today!
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