Smart way of Investment for NRIs - Indian Real Estate
Sep 19, 2016 Real Estate News
Do you know that Non-Resident Indians (NRIs) contributed around 18 percent (with a potential increase up to 35 percent) of the total property sale in India in the year 2014? Now the question is why invest in India and if so in what?
With the current government support, Smart City Mission has been launched for many cities in India. Now, the government has made NRI investment policies simpler. Main investors are the NRIs living in Australia, Canada, Singapore, South Africa, UAE and UK. Their choice investment is in the residential as well as commercial real estate arena.
Advantages with Short-Term and Long-Term Goals
High returns on investment for NRIs
In India, one can expect a return of 20 to 25 percent of the property investment. The reason is 10 to 15 percent hike in circle rates in several areas, which is the minimum rate of selling a property. This has been fixed by the government authorities. The return can go up to 30 to 40 percent depending on the property location and quality if the property is retained for a longer duration.
Favourable regulations
The present government has made easier policies for NRIs for investments in India. Indian passport holding NRIs are eligible to buy properties that are immovable except agricultural lands or farm lands. NRE account or NRO account can be used for fund transfer from the residing location to India. Besides, RBI permission is not required for such purchase and sale of property. Authorised dealers can deport with the proceeds of a sale even if the government hasn’t nod, provided the amount does not exceed $1 million. Besides, the government reduces capital gains tax on proceeds of a sale of property, in case of another investment in a property. Also, NRIs are eligible to apply for loans up to 80 percent on the valuation of the property. The loan is given in INR.
Developers’ schemes and proposals
Owing to this revolution of NRI's investment on the property, developers have started securing some properties solely for NRIs to purchase. Property exhibitions abroad have been another benchmark to advertise and sell several luxury condos in India. Target population is high net-worth Indians (HNIs) as well as cash-rich NRIs. The developers also give profitable schemes for investment attraction, such as taking care of registration formality and also stamp duty on behalf of the investor.
Forex advantage for NRIs
Dollar, Pound and Singaporean Dollar have a valuation higher than Indian Rupee. This plays an advantageous role for potential NRIs who would want to invest in property in India. More or less Indian Rupee has taken a stability now, which has given an advantageous path for NRIs with forex difference, making it safer to invest in India.
The overall scheme and factors have been proven as a win-win situation for the both the NRI and the country. These factors also have created a strong base of investment in the India by NRIs in the real estate market.
With the current government support, Smart City Mission has been launched for many cities in India. Now, the government has made NRI investment policies simpler. Main investors are the NRIs living in Australia, Canada, Singapore, South Africa, UAE and UK. Their choice investment is in the residential as well as commercial real estate arena.
Advantages with Short-Term and Long-Term Goals
High returns on investment for NRIs
In India, one can expect a return of 20 to 25 percent of the property investment. The reason is 10 to 15 percent hike in circle rates in several areas, which is the minimum rate of selling a property. This has been fixed by the government authorities. The return can go up to 30 to 40 percent depending on the property location and quality if the property is retained for a longer duration.
Favourable regulations
The present government has made easier policies for NRIs for investments in India. Indian passport holding NRIs are eligible to buy properties that are immovable except agricultural lands or farm lands. NRE account or NRO account can be used for fund transfer from the residing location to India. Besides, RBI permission is not required for such purchase and sale of property. Authorised dealers can deport with the proceeds of a sale even if the government hasn’t nod, provided the amount does not exceed $1 million. Besides, the government reduces capital gains tax on proceeds of a sale of property, in case of another investment in a property. Also, NRIs are eligible to apply for loans up to 80 percent on the valuation of the property. The loan is given in INR.
Developers’ schemes and proposals
Owing to this revolution of NRI's investment on the property, developers have started securing some properties solely for NRIs to purchase. Property exhibitions abroad have been another benchmark to advertise and sell several luxury condos in India. Target population is high net-worth Indians (HNIs) as well as cash-rich NRIs. The developers also give profitable schemes for investment attraction, such as taking care of registration formality and also stamp duty on behalf of the investor.
Forex advantage for NRIs
Dollar, Pound and Singaporean Dollar have a valuation higher than Indian Rupee. This plays an advantageous role for potential NRIs who would want to invest in property in India. More or less Indian Rupee has taken a stability now, which has given an advantageous path for NRIs with forex difference, making it safer to invest in India.
The overall scheme and factors have been proven as a win-win situation for the both the NRI and the country. These factors also have created a strong base of investment in the India by NRIs in the real estate market.
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