The Indian real estate market is seeing a green shoot of revival after a slump of almost 5-10 years. With reforms being visible and the industry moving towards greater transparency and efficiency, it is a good time for NRIs to invest in the real estate market.
NRIs can invest in both residential and commercial properties across India, but not in agricultural land or farmland. However, if they have received such lands as gifts or inheritance, they can own it. Also, the ownership of a property purchased prior to achieving an NRI tag remains intact.
To make an investment, your source of funds matters a lot. NRIs are not permitted to make any transaction through traveller’s cheques or foreign currency notes. They can only make a transaction through banking channels through NRE/NRO/FCNR account.
Apart from the above, here are the three points which NRIs need to keep in mind for successful real estate investment.
- Power of Attorney – Power of Attorney (POA) is necessary for NRIs if they are not physically present in India for executing property transactions. Also, travelling time and again to India can be a financial pain, so it is advisable to give POA to a trusted person who can
- Sign any documents on your behalf
- Manage the property and disputes (if any)
- Buy, rent and sell
- Checklist – To invest in India, an NRI needs to have proper property verification before investing and a fair knowledge of tax implications. Once the property is zeroed down, keep handy a list of all the documents required, KYC, funds and payment plan. These can then be handed to POA to help facilitate smooth investment.
- Regulations to keep in mind – NRIs holding an Indian passport needs no approval from RBI while investing in real estate. However, all the transactions full under the purview of the Foreign Exchange Management Act (FEMA). As mentioned above, payments can be made through NRE/NRO/FCNR account only or through inward remittances.
Also, investing in multiple properties is allowed. So NRIs can invest in more than one property at a time. However, repatriation of sale proceeds can be done only for two properties.
So, if you plan to invest in real estate with the aim of returning to India sometime in future, hire a property manager to manage your property investment. We have some excellent projects worth considering for investing. Our township projects in Mumbai as well as residential projects in Mumbai offer spectacular view, ample opportunities for recreation and distinct residences that suit individual needs.