The real estate sector in India has seen many ups and downs in the past two years by getting pushed from all the directions. The constructive features included things from interest rate cuts, formation of law-making body to guidelines on affordable housing. The recent action of demonetization was by far the most enterprising.
Given that the housing market of India is becoming a commitment oriented and strategized by right pricing, and NRIs have been increasingly showing interest towards this market. In the previous year, measures and initiatives were taken to direct the real estate sector in India towards transparency in transactions. Keeping these initiatives in mind, 2017 is likely to be the year of implementation. The Indian real estate is expecting push from the government side towards these measures to make the way easier.
The real estate market of India is transforming itself to a mature one. That is the reason why investors have opportunities for higher yield but at the same time have to consider risks. There are also certain rules and regulations to follow in Indian property investment market in India, specifically for NRIs.
Here a few instructions are to be kept in mind by the investors who are willing to invest in the real estate market.
According to the guidelines by the RBI, NRI investors can buy property and can also construct residential property in India. But, they cannot purchase any kind of farm house or land relating to agriculture or plantation. NRIs can own such properties only in the case of inheritance or gift.
It is to be noted that when an NRI purchases property under general permission, he or she is not required to file documents with RBI. There is no limitation on the number of properties, be it residential or commercial, bought by an NRI. He or she can also transfer any property to any resident of India. For the obtainment of the properties, payments can be made in two ways-
• Funds received by normal banking networks in India from abroad via inward payment.
• Funds in the non-resident account maintained as per the latest laws made by RBI and the Foreign Exchange Management Act, 1999.