NRIs - Prospects of buying property in India

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NRIs prefers to a place in India to remain rooted with the country and not just for Investment Returns - does not matter whether market remains Bullish or Bearish. Game changing policies like RERA and GST have now boosted the confidence and transparency and streamlined the property buying process for NRIs. This has been fueling new NRI investments into Indian property market. The fact that Rupee value depreciation against Dollar in 2018 was a sound reason for NRIs to view Indian Real Estate more favorably as well as Developers offering substantial freebies & discounts in addition to interesting payment plans. The Govt. also eased norms to facilitate a more streamlined and less cumbersome property buying process for NRIs. keeping in mind the positive sentiments.

In order to equip themselves for making best possible property purchase decisions, NRIs need to understand the regulations & processes related to India Real Estate. A quick realty check is: -

1) Understand FEMA (Foreign Exchange Management Act) Regulations - FEMA stipulates that
an Indian citizen residing outside the country can invest in Indian Real Estate, provided that the property is not Agricultural Land, Plantation or a Farm House. There is no restriction on the number of properties that NRIs can own in India. However, NRIs need to take informed decisions in such acquisitions - whatever property is for Own or Family use, or an investment for rental income and potential Capital appreciation. 
2) Understanding Return on Investments - The Return on Investments was extremely rewarding for NRIs before market slowdown in 2015. However, post slowdown exacerbated by De Mo, Rera and GST there was a shift in NRIs' focus towards commercial properties which promised better yields. In short, both residential and commercial real estate hold good potential for investment returns for NRIs.
3) Understanding Property Purchase Payments - NRI needs no special clearances or permission to invest in India Real Estate. It is pertinent to note that all the financial transactions be in Indian currency and through proper banking channels. They can use their own funds or take home loans from banks/financial institutions. RBI has mandated that they can avail of loan upto a maximum of 80% of overall property value.
4) Understanding the Documentation - With the improvement in technology, NRI can conduct online search including via 3D talk throughs and make checks and take control of all property documents.
5) Understanding income Tax benefits - NRI enjoy all tax benefits as the local residents can. They must file income tax returns in India as well.
Real estate consultants can be hired to assist NRIs not only in shortlisting the right options but in inspecting properties, negotiating prices & roping in best offers on their behalf.


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