Due to its promising growth, Real Estate is a great option among the top investments for NRIs. The government provides various relaxations in the provisions so that the NRIs can invest in India. But, it is also crucial for every NRI to ensure that they meet the eligibility as per the Indian law to invest in Real Estate or any other type of investment.
Real Estate has been the best and top investment option for NRIs. It is a one-time investment and one is likely to receive a high return on interest, although there are moderate to low effects of market fluctuations involved.
Since the Covid outbreak, the NRIs have realized the importance of investing in their home country so that they have an option to come back and settle here in the future. The pandemic made real estate investment both lucrative & sentimental options for the NRIs. As per the recent data, it is clear that maximum properties were booked in India by the NRIs. The substantial decrease in property rates, stricter regulatory measures and enriched consolidation in the sector have together created an attractive scenario for NRIs to invest.
According to a report by 360 Realtors, Non-Residential Indians have invested $13.3 billion in the Indian Real Estate market in FY21 as against the earlier estimates of $13.1 billion. The investment capacity has scaled up by 6.4% compared to the previous fiscal despite the overall market sentiment suffering damage due to the pandemic all over the world. Based on a regression analysis, the report has further recommended that the investments will rise to $14.9 billion in FY22, growing by 12%.
Today the most important thing connecting NRIs and domestic buyers is the Technology. It conveniently bridged the gap between the two during the Covid crisis. The buyers have an advantage of virtually/ digitally inspecting the property, online submission of documentation, entire paperwork can be digitally managed and the final purchase can be done without incurring unnecessary traveling.
According to RBI’s new guidelines, it was declared that NRIs and OCIs do not require prior approval for the acquisition and transfer of immovable property in India. There is no other intimation or communication that is required to be sent to the RBI. The NRIs have rights to either gift or sell immovable property to any Indian resident. Apart from any plantation, farmhouse or agricultural property one can also transfer or gift any property to any NRI. The payment for the purchase of property in India by NRI shall not be made by way of Traveler’s Cheque or by Foreign Currency Notes or by any other mode. It can be only done through two ways – Funds received through normal banking channels by way of inward remittance from any place outside India and Funds held in any non-resident account maintained in accordance with the provisions and regulations made by the RBI.
Summing up, the increased activity and sentiments of NRIs investing in Indian Real Estate has increased the positive outlook for the sector in 2022 and coming years.
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