The Indian real estate sector has remained a hot favourite of property investors, especially the Non-Resident Indians (NRIs) . Regardless of where they live, the feeling of purchasing a property in India is truly remarkable for NRIs. NRIs can buy or own immovable property in India in compliance with the FEMA (Foreign Exchange Management Act) regulations. According to market experts the most significant benefit for NRIs is that if they invest their funds in any immovable property in India, they are subject to almost no legal formalities. They only need to complete registration procedures in real estate.
Experts explain the reasons why NRI should consider investing in immovable property in India.
Nakul Mathur, MD, Avanta India says that every real estate investment must be carefully considered, planned, assessed, and put into practise. “NRIs have always been opportunistic in their investment decisions, and with the updated rules and relaxations compared to prior decades, buying real estate in India is no longer an impossible feat for NRIs,” he said.
He further added that the government and the RBI have emphasised the need to increase NRI property investment in India and further streamline NRIs’ ability to purchase real estate.
Subhash Goel, MD, Goel Ganga Developments explains that an NRI can invest in any immovable property in India, other than agricultural land, plantation property or a farmhouse.
“Banking regulations in India are favourable towards NRIs wanting to invest in immovable property. Loans are available through leading financial institutions, subject to a few conditions. Finance is obtainable for buying of land, construction, renovation or purchase of a dwelling unit or commercial property. EMIs are payable by remittances from abroad. Investment in immovable properties now can serve as retirement homes when the NRIs wish to return to their base,” said Subhash Goel,
Investment in immovable property is considered valuable in India. An expanding economy, increased disposable incomes, and lowered interest rates have made investments in immovable property more attractive. Mukesh Goel, Partner, Auric Group says that if NRIs earn a rental income from the property, they must comply with income tax regulations. However, their investment in real estate projects is exempt from any major legal requirements. They may also transfer immovable property to a person residing in India, a person residing outside of India who is a citizen of India, or a person of Indian origin residing outside of India.