As recently witnessed the Nonresidential Indian’s perpetual interest in Indian real estate is motoring further. 

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By Century Real Estate November 12, 2019

Why is Indian Real Estate an attractive investment option for NRI

As recently witnessed the Nonresidential Indian’s perpetual interest in Indian real estate is motoring further. However, this growth is partially credited to the implementation of key policy reforms in the Indian realty sector bringing about overall accountability.

Subsequently, Indian Realty has also lured NRI realty investors due to the various factors favoring them such as;

  • Depreciation of Indian currency,
  • Reduction in prices post demonetization
  • Major policy reforms
  • More transparency
  • Greater consolidation
  • Increasing Returns on Investments
  • Easy Rental Incomes
  • Attractive offers and discounts
  • Luxurious lifestyle amenities,
  • Designer homes with modern uber-facilities
  • High-quality craftsmanship with reputed Developers

The impetus

Fortunately, Indians make up for one of the largest numbers of migrants in affluent countries. A survey proved that India was the highest receiver of foreign remittances in the world. This goes to show that though many Indians might move to prosperous countries yet, they have been consistently investing in their motherland. Thus, the increasing NRI investments in plotted and commercial projects are a testament of their sentiments towards their home country.

Furthermore the NRI funding in India into real estate has gained momentum due to the attractive exchange rate favoring NRIs with the dollar sturdily appreciating. Thus, as the cost of acquisition of property becomes lesser, NRIs wish to understand the Procedure to buy properties in India.

The Procedure 

The government in the past couple of years has been favorable to investments by non-resident Indians in real estate. Rules and regulations have been eased to simplify home buying for NRIs. For example, non-repatriable investments by NRIs, OCIs (Overseas Citizen of India) and PIOs (Person of Indian Origin) have been treated as domestic investments. This certainly encourages more and more people to invest. Therefore a recent survey proves the above statement that almost 30 percent of the total global real estate transactions in India have been cross-border.

Loan Facility

NRI Home Loan allows many NRIs to get home loans when investing in properties. It is financially sound, to purchase a property through a home loan rather than through personal financing. Personal funds could be used as the real estate sector is giving promising returns consistently past few years. 

RBI has issued a notification granting a general permission to NRIs for purchase of certain residential properties, India without obtaining any specific permission from RBI.  So Indian Citizens who have become NRIs, for FEMA (Foreign Exchange Management Act) purposes, can acquire a certain immovable property situated in India without any specific permission from RBI.

Types of Investment

NRI’s have been given general permission to purchase immovable properties in India yet the RBI has certain regulations which cease the NRI’s from purchasing certain types of properties in India.

Like the NRIs are allowed to purchase only residential or commercial property. That translates into no permission for agricultural land, farmhouses or plantation property. Therefore if the investment is either a residential property or commercial property, they can conclude the transaction without even intimating the RBI. Additionally, there is no constraint as to the quantity of residential or commercial assets an NRI can purchase.

The Investment Options

 NRI can pay for their acquisition by way of transmittal through banking channels from overseas or from money lying in their NRE/NRO or FCNR account. However, it’s mandatory for the remittance to come only through apposite banking channels, therefore, the payment cannot be proffered in the form of a foreign currency or TC’s. 

The Concerns

Though NRI’s have been investing in their motherland their substantial concerns have been the lack of clearness in transactions, deferments in project delivery and the reputation of the developer. Fortunately by the introduction of RERA(Real Estate Regulation and Development Act) these concerns have been committedly addressed. Hence, NRI buyers are invigorated with confidence and have doubled their interest back in the real estate sector. Thus, the continual initiatives and better regulations by the Government have boosted infrastructure development across the country further heartening NRIs to prefer the Indian realty market for long term investments.

Reputed Developers

With more than 40 years of industry experience, Century Real Estate is recognized by its clients and colleagues as one of the oldest and most respected companies in the real estate space in Bangalore and in India.

Therefore even the cautious NRIs willingly want to invest in Century Real estate’s properties, such as ultra-luxurious villas, premium apartments and plotted developments spread across south India. Century is also launching their new premium apartments in Jakkur, known as Century Horizon.  Century Real Estate thus as a brand reverberates loyalty, is connected to the latest Technology and is powered by trust and quality and is, therefore, the preferred choice for NRI investments.

Conclusion 

It is witnessed that NRI’s settled abroad mostly want a home back in their homeland to keep their culture and roots alive. Thus the lucrative Indian real estate market is significantly attractive to foreign investors. North Bangalore being a good investment hub especially Luxury Apartments in Jakkur, makes way for greater gains in the future. Bearing in mind the present market conditions post the introduction of RERA and Goods and Services Tax (GST), real estate in India has definitely become more competent, well-organized and transparent. Thus, the Indian real estate sector provides a milieu beneficial enough for Non-Residential Indians buying property in India. 

 

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