Property in India: A Secured Investment Plan for NRIs
Real estate involves the sale, purchase and growth of land, residential and commercial buildings. It is one of the most prosperous streams considered for investment in India. Property in India can easily be bought if the buyer is aware of the required details. These details must include information about the developer, information about the property and its builder, circulated rates, location, legalities associated, agents involved, etc.
Considering the post COVID19 scenario, Non-resident Indians (NRIs) are showing more inclination towards real estate investment plans as compared to the situation before the invasion of Coronavirus. With their more involved approach in finding the right property for sale in India, the demand for construction and development in the same has also shown an increasing trend. The pandemic has made everybody realize how important it is to possess a property of your own. Similar interest can be seen in the NRIs. Long-term security is what the NRIs are looking for.
Developing physical resources is the need of the present state that has lured NRIs’ attention. They are exploring different options in real estate. Villas in India can be the first preference for the NRIs. Luxurious properties have always been a point of attraction for the Indians who are settled outside India. It is a medium through which they can add a badge of a status symbol in their baggage of success. It is not only and always about the type of property but the place where the property is situated that grabs the attention of the Non-resident Indians.
Let’s check out the preferred places that can hit the preference list of the NRIs or the person of Indian origin (PIOs) for real estate investment in India and are known to produce majestically luxurious properties.
Mumbai: Also known as the Maya Nagari of India, Mumbai has been proclaimed to produce deluxe commercial and residential projects. These properties are considerably the gemstones in the real estate developments. The price range can vary depending upon the property type and the place where it is located. These buildings are aesthetically designed with all the necessary and advanced technologies to provide all sorts of comfort to their buyers. Flats in India with Mumbai as its location gains more value as compared to the same in other states.
Bangalore: Silicon Valley of India, Bangalore is also a famous spot for real estate investment that appeals to foreign buyers. Being the IT hub of the nation, the place has become a focal point for the NRIs with respect to work culture. Bangalore's real estate market is the ultimate intersection of varied properties. People desire to have a property in this state of India. The style of designing properties here is captivating, as the techno-friendly approach holds the attention of the buyers.
Gurgaon: Commercial properties for sale in India can notably be seen in Gurgaon, Haryana. There are a number of expensive and exclusive properties in Gurgaon that attracts the interest of the foreign buyers. The top areas or localities that can hit the preference list of the foreign investors include Sector-65, DLF CITY, Palam Vihar, Sector-86 and Sushant Lok Phase – 1. Realtors in Gurgaon are very specific about their project design and structural representation. English-themed luxury commercial complexes and homes are also available in Gurgaon.
Pune: Pune is a place that is preferably calm and complacent as compared to other metropolitan cities. NRIs who wish to spend the rest of their lives in a peaceful environment must buy a property in Pune. It is a place where nature blends extremely well with technology. The houses and the commercial complexes are constructed in a way that would justify the presence of nature in a majestic way. Greenery everywhere gives the essence of landscape serenity to the dwellers.
Noida: Property in Noida is favoured because of its proximity to the nation's capital. It is kind of fascinating to buy a property that is close to the capital of the nation. Such properties are also easily trackable for NRIs. Noida is the next upcoming commercial hub of India with a number of developers establishing their hold in the real estate market of Noida. With the announcement of setting up a film city in Noida, the rates of the properties have gone up. The place will soon become a landmark for the sale and purchase of properties. The avenues are high and the scope of investment is increasing on a daily basis.
NRIs’ Guidelines for Buying Property in India: The introduction of various reforments and guidelines issued for the sale and purchase of properties on Indian grounds has led the investors to explore the arena of possibilities in buying the property of their choice. Even with these newly introduced directions, there are a number of pointers that the NRIs must keep in mind before they start planning their purchase in India. These factors will not only serve them to get the best property but will also help them in avoiding any kind of fraudulent or unnecessary legalities. Let us look at some of these interesting checklists:
Documentation Required: In particular, the documentation list is a little relaxed as compared to other factors involved. For those showing interest in making a real estate investment in India must know that the most important certificate that will be required is their address proof. Passport is another important document that has been made mandatory for such an investment. Without submitting a copy of the passport, no further proceedings can take place.
Another important indenture required is a PAN card or a permanent account number. Photographs along with these documents are also required. Income proof and certificates related to any financial liabilities are initial documents that must also accompany the PIOs/NRIs. A testimonial related to the track record of the repayment of loans is also asked by some of the developers in India.
It is important to make sure that the shared details are updated and authentic. Any kind of forgery in these would land up in not only losing the property but also in getting detained and pertained to buy properties in future. It is always advised to be prepared in advance with the required documents in order to avoid last-minute hassles.
Property Rates in India:
With the up-gradation and amendments in the real estates’ pricing system seen in the past few years, investment in India has become lucrative. The scenarios have turned favourable for the NRIs with respect to the present currency rates. The property rates in the Indian real estate market do not pose a major impact on the foreign buyers. These buyers are affected by the upsurge and downturn trend of the Indian currency.
However, with respect to the rates of properties in India, the prices completely fluctuate. The place value and the type of inventory available determine the pricing of the properties. Apartment price in India grabs more attention of the person of Indian origin (PIOs), as comparatively the apartments are considerably more dependable, independent and easy to handle. Villas and luxurious homes require more attention and maintenance.
Payment Module: As per the norms described by the Indian government, any Non-resident Indian can buy an immovable property (residential or commercial) in the country. These properties will however not include plantation or agricultural lands. It is important to note that the payment for such a purchase will only be in Indian currency.
The NRIs also have the provision to take home loans from the banks and housing finance set-ups authorized under the National Housing Bank, Government of India. The repayment of the loan will be done through the NRO/NRE account or FCNR deposits.
According to the guidelines and regulations described by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA), the funds accumulated for buying a property in India must be maintained in a non-resident account of the buyer.
Apart from the aforesaid, the NRIs must also note that a declaration needs to be filed before making the purchase in the Indian real estate sector. IPI 7 is a required declaration form that is to be submitted to the Central Office of Reserve Bank in Mumbai. This form without fail should be forwarded within 90 days frame dated from the date of purchase of the property. A verified copy of the document proving the transactions must also be submitted along with the declaration.