The Indian real estate market has never appearing so favorable with NRIs. The current interest of NRIs in the Indian real estate market can largely be attributed to the Indian government’s regulatory move to enhance RERA, making the real estate sector more organized and accountable. Indian real estate investment offers NRIs strong returns as well as low initial capital requirements. But there are a few NRI regulatory norms that you need to understand in order to ensure that there are no abrupt interruptions in the course of your investment journey.
Real estate agents in India ought to be addressed with particular caution due to their important position in the Indian real estate industry. Let’s discuss the highlights:
Benefits of Foreign Currency Exchange
Indian real estate investment can be made by NRIs holding Indian passports without requiring promises from RBI. NRI Investors need to follow the Foreign Exchange Management Act of India (FEMA) regulations. There is no requirement for prior approval to carry out cross-border investments in real estate, as all borrowing undertaken must be done in rupees. NRIs are therefore required to abide by Indian rules and fiscal norms when making the investment. It is of great importance to get acquainted with the tax incentives permitted under the Indian Income Tax Act because they can be used to mitigate the incidences of double taxation.
Analyze the Scope of Purchasing in Strong Markets
It is crucial to invest in a property that increases its value so that a reasonable return on investment is achieved. Even so, Indian properties located in southern states like Karnataka, Tamil Nadu, and Andhra Pradesh simply have no returns with Bangalore, Hyderabad, and Chennai now in the hot spot. They will guide you on how to keep track of various changes in the Indian real estate sector to understand which are the most lucrative areas for investment purposes. They will also make sure that you avail facility management services for the properties owned by you for the better protection of the properties.
Investment criteria
Investment options for NRIs are only limited to residential or commercial properties. They don’t qualify to buy any type of agricultural farmlands or farmhouses. Nonetheless, they have the right to acquire such assets through inheritance or gifts. In exceptional cases, the court in your state may give permission to make the investments in these prescribed properties after thorough examination.
Power of attorney
Power of attorney POA is a letter or document that gives an authority to act on someone else’s behalf. In this case, the other person is the NRI. If an NRI is geographically not able to come to the country and be part of the property transactions, he or she must ensure that a Power of Attorney is given to a trusted individual or company to carry out transactions on his/her behalf, and that the document is registered to prevent any abuse or disagreements. If you can’t be there in person, your POA will sign documents, view the property, and do things for you.
Considerations on Selecting a Builder
If you are an NRI, it is crucial to work with a builder who has a perfect resume in a real estate market. Seeing that you are not physically available to check the building’s status or quality, you have to trust the builder you choose to put your money into. A good builder will also possess all the necessary clearances and certificates that are required, this can enable you to expedite the process of purchasing your home.
Investment in a Commercial Property
If the property you are purchasing is intended for the purpose of profits, go for the commercial properties that are high on demand by multi-national firms. This will help in getting regular returns and better capital appreciation. A good located with blue-chip tenants placed commercial property can give returns of 6-10% of capital invested in the property, which is about twice the returns from a residential property.
Conclusion: Finally, a Place of Your Dreams!
If done properly, investing in real estate in India can bring great fortunes. Go out and find relevant consultation and make sure you abide by all guidelines and stipulations before venturing into real estate in India. The early you invest the better your returns will be when the economy grows and the prices go up. For Non-Residents, if you do not know which type of property to buy, go to Dream Location Property Group. We have a large inventory of high end houses in the most prestigious locations in Bangalore that you can use for real estate investment!
For more information about Dream Location and to search your dream property, please visit Dream Location on Google Map. Contact us today to know more about the best real estate deals in Delhi and North India; we will connect you to the right property investment.