Everything an NRI Needs to Know About Buying a Property in India
Feb 27, 2020 Home Trading Steps
Leaving one’s country and settling abroad is not always the easiest decision for many. However, keeping their connection to the roots in the country is something most NRIs look forward to. What better option than investing in a property in their home country that will not only give them beneficial return in future but also give them a sense of being connected to their birth country.
Among the many advantages of owning a property in the country is the fact that the value Indian rupees are against the currencies of different countries is beneficial. If an NRI ever wants to return to India then they already have a home in the country so they won’t have to worry about accommodation or their living status. For senior NRIs to maintain and keep their home in India safe, reverse EMI is an option that most people prefer and is not taxable.
The higher rate of return from the real estate in India is one of the prime reasons for the investment by NRIs. The consumer protection rights and acts like RERA are in place to make sure that the buyers’ interests are not exploited by the developers and they are delivered exactly what they were promised.
India is among the few countries that are driven by the demands of the younger generation. According to the reports in the next two years, the demand for the homes by millennials will increase. The economic progress of the country has shown a healthy rise at the growth rate of 7.02 percent over the last seven years with the rise in purchasing power, demand and consumption in the real estate sector of the country.
Even with many benefits, there have been changes in the interest among the NRIs to invest in the real estate of the country. India’s real estate sector provides a vast range of choices for the buyers. From affordable housing to high-end luxury units, there’s something for everyone. Metro cities like Delhi, Mumbai, Hyderabad and Chennai are the major driving sectors in terms of sales in real estate. The residential properties yield 2 to 4 percent while the commercial sector yields 8 to 11 percent profits.
Reasons for increased interest by the NRIs:
Over the past few years, there has been an increased rate of interest among the NRI buyers for the investment in the real estate in the country.
Among the many advantages of owning a property in the country is the fact that the value Indian rupees are against the currencies of different countries is beneficial. If an NRI ever wants to return to India then they already have a home in the country so they won’t have to worry about accommodation or their living status. For senior NRIs to maintain and keep their home in India safe, reverse EMI is an option that most people prefer and is not taxable.
The higher rate of return from the real estate in India is one of the prime reasons for the investment by NRIs. The consumer protection rights and acts like RERA are in place to make sure that the buyers’ interests are not exploited by the developers and they are delivered exactly what they were promised.
India is among the few countries that are driven by the demands of the younger generation. According to the reports in the next two years, the demand for the homes by millennials will increase. The economic progress of the country has shown a healthy rise at the growth rate of 7.02 percent over the last seven years with the rise in purchasing power, demand and consumption in the real estate sector of the country.
Even with many benefits, there have been changes in the interest among the NRIs to invest in the real estate of the country. India’s real estate sector provides a vast range of choices for the buyers. From affordable housing to high-end luxury units, there’s something for everyone. Metro cities like Delhi, Mumbai, Hyderabad and Chennai are the major driving sectors in terms of sales in real estate. The residential properties yield 2 to 4 percent while the commercial sector yields 8 to 11 percent profits.
Reasons for increased interest by the NRIs:
Over the past few years, there has been an increased rate of interest among the NRI buyers for the investment in the real estate in the country.
- The investment risks have decreased considerably since the introduction of RERA. Only the major player in the market can withstand the stringent laws of RERA that leaves nothing but the best for the buyers.
- New interest rates and GST acts as a confidence booster for potential buyers.
- The provision of bankruptcy and insolvency cases has changed the way the customers now look at the real estate of the country.
- The affordable housing project has increased the demand not only because of the lower cost but also the various benefits are given by the government.
Consider these before investing in the country:
Before investing make sure you are aware of the future plans by the city authorities. Many Tier-II cities are in the smart city project and it will a good time to invest in those. Make sure you are aware of the upcoming projects and the new areas that will be developed. This will give you a fair idea of how the prices will be in the future.
The right to invest is when Rupee is weaker against your currency to make the most of the investment. Finding the right time can be a waiting game but if you look at the how Rupee has been against your currency in last few months, it will give you a fair idea of when you should invest.
Do a quick property evaluation before investing in the real estate. You can ask a professional property evaluator to help you evaluate the value of the property.
When buying a property in India, NRIs are mandatorily supposed to submit copies of the following documents:
Before investing make sure you are aware of the future plans by the city authorities. Many Tier-II cities are in the smart city project and it will a good time to invest in those. Make sure you are aware of the upcoming projects and the new areas that will be developed. This will give you a fair idea of how the prices will be in the future.
The right to invest is when Rupee is weaker against your currency to make the most of the investment. Finding the right time can be a waiting game but if you look at the how Rupee has been against your currency in last few months, it will give you a fair idea of when you should invest.
Do a quick property evaluation before investing in the real estate. You can ask a professional property evaluator to help you evaluate the value of the property.
When buying a property in India, NRIs are mandatorily supposed to submit copies of the following documents:
- Address Proof
- Passport Size Photographs
- Copy of the passport
- Copy of PAN card.
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