NRI Investment in Property
NRI investors are showing keen interest to invest in real estate in India due to the ease in investment regulations and boom in the market. As the property prices in India are increasing higher than those in UK and US, NRIs are considering this as the best time to invest in the real estate sector in India. Real Estate sector in India is developing with integrated townships, residential and commercial complexes. World class infrastructure is making the investment in property in India more lucrative. Real estate developers are launching luxury apartments in India keeping in mind the needs of NRI customers.
Demand for NRI property in India has soured, due to high capital appreciation. NRIs are among the smart property investors in the Indian market. Luxury apartments in India are the top gainers for the NRI investors. They offer good rental yield and the appreciation in capital. Preferred cities for the commercial investment by the NRIs are Mumbai, NCR, Bangalore, Hyderabad, Chennai, and Pune. NRI property buying in India is gaining momentum due to the rise in IT and BPO sectors in India. There are no restrictions on NRI to purchase immovable property in India.
Recent amendments in the Foreign Exchange Regulation act now permit NRIs to acquire any residential or commercial property without the prior permission of RBI. However, NRIs are not allowed to purchase agricultural land, plantation property and farmhouse in India. They are eligible to purchase luxury apartments in India, under construction property, land, pre-launch properties, and ready for possession properties. Residents of India can gift any immovable property in India to NRIs. However, agricultural property cannot be given as a gift to NRIs. Hence, NRIs are eligible to buy, eligible to receive gift and eligible to receive as inheritance any immovable property in India. Agricultural land, plantation property and farmhouse in India can be acquired by NRIs by inheritance only and that too before acquiring NRI status.
Important documents that are required for buying property in India by NRIs are Pan Card, PIO card, passport, passport size photographs, address proof and Notarized power of attorney to someone in India. NRIs are eligible for home loans in India like the residents of India. Reputed banks like HDFC, ICICI, SBI, Standard Charter, and many others offer home loan facility to NRIs to purchase property in India. Home loans are offered for buying new apartments, buying of plots, construction on owned plot or for alteration to the existing property. After meeting the necessary terms and conditions, NRE/NRO account is opened.
Before to have a property in India, an NRI must have a look on these checkpoints on property that to be purchased. The property must have a clear title, must be aware of taxation rules in India, the repatriation of sale proceeds, Power of Attorney and must have a watch on real estate trend. Of course, luxury apartments in India are the most wanted segments by NRI for investment purpose.
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