India: An Emerging Market for the Long-Term Investment
Indian Real Estate is one of the most recognized sectors, that has witnessed a surge in flow of foreign investments.
Stable government and implementation of reforms such as the GST is helping India attract the highest interest of global investors. While Real Estate Regulation and Development Act (RERA), Goods and Services Tax (GST) and demonetization has already been implemented, the Benami Property Act promises to make residential real estate far more transparent than it was ever before. This has enhanced the confidence of global investors in the Indian economy. Also, the new real estate rules have simplified the process of property buying for NRI’s.
Looking forward, the real estate investment industry will find itself at the center of rapid economic and social change and the NRI sector will play a key role in the growth story of Indian economy.
A Non-Resident Indian (NRI) is a person resident outside India, who is a citizen of India or is a person of Indian origin and holds a Indian Passport. An individual who is temporarily emigrated to another country for six months or more for work, residence or any other purpose.
Purchase of immovable property -
A NRI can acquire by way of purchase any immovable property (other than agricultural land/ plantation property / farm house) in India.
Transfer of immovable property -
A NRI may transfer any immovable property in India to a person resident in India. He may transfer any immovable property (other than agricultural land or plantation property or farm house) to an Indian Citizen resident outside India or a PIO resident outside India.
Payment for Acquisition of Immovable Property -
NRIs can make payment for acquisition of immovable property - (other than agricultural land/ plantation property / farm house) out of:
Funds received in India through normal banking channels by way of inward remittance from any place outside India or by debit to his NRE / FCNR(B) / NRO account.
Such payments cannot be made either by traveller’s cheque or by foreign currency notes or by other mode except those specifically mentioned above.
A NRI who has purchased residential / commercial property under general permission is not required to file any documents with the Reserve Bank.