NRI

Where Do NRIs Like To Invest in India?

The real estate market in India has seen a constant growth in recent times and property prices have touched record highs. This has led to major investments, which have helped India's economy to grow, effectively making the real estate sector the second largest employer in the country

Having a property in India adds to a nostalgic value and is beneficial for NRIs from the business point of view, as they do not have to put in large investments thanks to the USD to INR conversion. These NRIs are mostly from countries like Australia, UK, Canada, Middle East, the US, Singapore and South Africa



NRI

1. Where Do NRIs Like To Invest in India?

The real estate market in India has seen a constant growth in recent times and property prices have touched record highs. This has led to major investments, which have helped India's economy to grow, effectively making the real estate sector the second largest employer in the country.  
Having a property in India adds to a nostalgic value and is beneficial for NRIs from the business point of view, as they do not have to put in large investments thanks to the USD to INR conversion. These NRIs are mostly from countries like Australia, UK, Canada, Middle East, the US, Singapore and South Africa.
Top Indian cities for realty investment :
Pune, Bengaluru , Ahmedabad ,Gurugram , Kolkata , Jaipur Etc.

Government benefits
The Indian government has also made sure to woo NRIs to invest in residential projects in India, as rules of FEMA (Foreign Exchange Management Act) and the Reserve Bank of India (RBI) have made investing in India easier for NRIs. There are also exciting offers to help them earn profits. Tax implications are also eased as the interest on home loan is liable for deduction from NRI's taxable income, that too without any upper limit. NRIs looking to invest in ongoing projects in India, especially in the aforementioned cities, can expect good returns on investment.

 

Top Indian cities for realty investment

What Are The Rule For NRI Investment In Indian Real Estate

It started with heavy investments from the non-resident Indians (NRIs) in the property market in the National Capital Region (NCR) of Delhi.. They have shown inclination towards high-end residential and commercial properties.
It is not tough for an NRI to make an investment in property in India. The paperwork has reduced after the automatic route was introduced by the Indian government. This means there would be less running around the Reserve Bank of India (RBI) and Foreign Investment Promotion Board (FIPB) for approvals for such investments. The rules for any such property transaction fall under the Foreign Exchange Management Act (FEMA).
Though there are no complex maze of approvals required, here are the rules and guidelines NRI investors have to follow when investing in property in India:
1. Citizenship: If you are an NRI who holds an Indian passport, you would require no approvals. Under general permission category too, Persons of Indian Origin or PIOs require no approvals unless they are citizens of countries like Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or Bhutan.
2. Land type: NRIs are allowed to purchase any number of immovable property, both residential and commercial, which is neither agricultural land, plantation property nor a farm house. Ownership of any such property (agricultural land, farm house and plantation property) is possible for the NRIs only when it's been gifted or inherited.

NRIs In Whose Care is Your Property

That real estate investments are a double-edged sword is no secret. You buy property with a view to make gains. However, you also run the risk of losing if you own an asset. Because India's real estate provides great investment opportunity, non-residents are often willing to put more and more of their money here. At the same time, they have to make sure their investments in the country of their birth remains safe. All the instances of relatives snatching properties of their NRI kith are sure to make them apprehensive. Purely for this reason, many of them take the help of professionals to take care their properties. Even in such a scenario, an NRI investor will have to exercise caution.

How NRIs May Gain By Investing In India Now

Here is why it's the best time for NRIs to invest in India.
Increasing value
Market gurus predict returns of property investment in India may go as high as 20-25 per cent. The returns from a good investment is expected to go as high as 30-40 per cent in the long term. This could be a great opportunity for NRIs living in countries such as the US, UK and Australia, where returns on property are not as high as in India.
Circle rates in many areas may also go up by at least 10-15 per cent, further hiking rates. Circle rates are the minimum rate at which a property can be sold, as is fixed by government authorities.

Rules An NRI Investor Must Follow.

This could be the best time for the non-resident Indians to invest in properties at home ─ an upcoming law would guard them against the wrong-doings; a new tax system will further simplify things; the government's push towards affordable housing will make the deals much sweeter; on top of it all, the Indian currency has been falling against the dollar. For the reasons mentioned above and many more, it is hard to resist the charm Indian real estate is oozing currently.
While you are going for it, we suggest you ask yourself these three questions and go forward only after having a satisfactory answer.

Who is your developer?

It would become a lot safer to invest in India's real estate after the Real Estate (Regulation &Development) Act, 2016, comes into force on May 1. As the law mandates all developers to be registered with the Real Estate Regulatory Authority (RERA) to do business in India, umpteen small and medium players would cease to exist.  Real estate would become a field where only serious players would be allowed to operate. However, it would only be safer to stick with the trusted names; this does not mean buying properties only with the big names which charge a premium from buyers because of popular brand tags. A not-so-big developer should do just fine if he has been a performer. Also, do look at the track record developers which could be very location specific. For instance, if you want to buy a flat in Jaipur, a local developer could be a better choice.

Who is your advocate?
  The law does protect you from all sorts of crimes but as we all know prevention is better   than cure. This is why it is imperative you trust only your near and dear ones with the  responsibility of managing your property in India. There have been multiple reported cases   in the recent past where landlords living abroad have been duped by their representatives in   India. Be mindful of the fact that your representative could misuse the power of attorney (POW) and dupe along with you other parties, too. This is why it is best to bestow only upon   the trusted ones the responsibility. In case you feel your relatives cannot be trusted with  the job, you can hire people for the same. Even if you have to pay them, there are no risks surrounding your property.
  Your representative found you a fine tenant, who has agreed to pay you a handsome rent.   You spoke to the person on phone and think him alright. You do think it would be better   to personally meet the tenant but it is just not possible for you to visit your home   country any time soon. However, we still suggest a personal meeting with your tenant.   Telephonic conversations are not enough as far as business alliances that have legal implications are concerned. This only points towards the gravity of the situation. A thorough inspection should be done before letting out your property. 
Ans. The number of documents to be furnished by a Non-Resident Indian (NRI) is almost  the same as that of an Indian who wants to sell a property in India, there are a few odds and ends that the former needs to get in place.  Putting the paperwork in place is that part of an otherwise happy home-buying process  most people would like to avoid. This, however, happens to be the most crucial part of   the purchase and it is better you do your research before you hit the home-search button.
Passport   An NRI, who want to sell a property in India, should hold a passport; not necessarily an   Indian passport. This will serve as the identity proof of the person, involved in the transaction.   For an Overseas Citizen of India (OCI) and a Person of Indian Origin (PIO), a passport serves the same purpose.
A number of NRIs do not pay taxes in India, as their income is taxable in the  countries   they stay. However, experts believe NRIs should apply for a PAN (Permanent Account   Number) card here when they intend to buy a property in India, as it will be  required to   apply for a tax exemption certificate as after the sale of the property. PAN  numbers are   given out to NRIs with a foreign communication address to select countries.
If an NRI has been holding a property for a certain period and earning money from  it (by   renting it out, etc), the transaction becomes taxable. In that case, tax returns  for the   whole property-ownership period should also be kept ready.
An NRI has to give documents in support of his address in India as well as   abroad. This   may include a ration card, telephone or electricity bills, life insurance policy   statements, etc. Same set of papers are also required as the proof of residence  abroad.
A key document needed in the process is the sale deed, also a primary proof of  ownership. A legal document, sale deed is an agreement executed by an NRI while  purchasing an under-construction property in India.
A letter of allotment (from a society, a builder or any relevant authority)  bestows the  property to the said person who holds it.
For an apartment in a particular society, a letter from the apartment/society is  needed  for a go-ahead to the sales process. This document states the seller has no outstanding  payments to the society. A copy of membership of the society is also important to   establish ownership of the property.
While a copy of an approved building plan is necessary for selling a property, an   occupation certificate is a proof that the apartment has been occupied and is  also given  out by the builder or the building society.
An encumbrance certificate is necessary to assure the buyer that the land or the   property has no dues to any legal authority. This is important in the case of a  house,  an apartment or even land.  Apart from these documents, it would also help if an NRI can provide documents of  property tax receipts over the years. A guarded buyer may ask for it.   case an NRI is unable to produce any one the above documents, he/she may go  for a   lawyer certificate that proves the ownership of the property. A lawyer would  carry out a   title search and produce a report on the property. Though this certificate  is also  admissible for a sale, an original document is necessary to get a sale done quickly.
The taxman may come after those who bought property from non-resident Indians  (NRIs) and   failed to deduct/deposit they are obliged to. Earlier this year, officials of the   Board of Direct Taxes (CBDT) had been directed to carry out surveys to detect   tax evasion. Officials had also been directed to collate data of property  transactions   and match it TDS (tax deducted at source) records to find out the possible  mismatches.   Interestingly, in several cases these “defaulters” may face the wrath of the  taxman   without having intentionally withheld anything ─ tax laws related to   property purchases   where the seller is an NRI are complex, and must strictly be carried out  with the help   of an expert only. Here is a primer for those buyers who are planning to buy a   property that belongs to an NRI.