One of the positive side effects of the ongoing pandemic for the real estate industry is that it has made home-buying a lucrative option for the NRI market because of the increased transparency, enhanced digital access, and relaxed investment norms. With builders attracting prospective homebuyers with initiatives like discounts and lucrative payment plans, this particular segment is showing increased interest in real-estate investments.
There are different reasons why NRIs invest in India - While some like to settle in India after their retirement, others consider it a secure investment option. The latter has translated into a considerable amount of interest especially after the implementation of RERA as the element of risk and lack of clarity associated with property investment in India has reduced. Also, the significant drop in property rates, and the falling Indian currency rate have made it a favourable time for NRIs to invest in Indian real estate. Add-on benefits like lower home loan interest, lower down payment and discounts provided by builders could positively influence home-buying decisions as well. This, combined with the digital-led recovery through virtual real-estate events like property shows and expos offer a holistic view of the properties for potential homebuyers at the comfort of their own homes.
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The interest from NRIs to invest in Indian real estate primarily comes from the NRI segment settled in the USA, UK, Singapore, and the Middle East; and they’ve shown increased interest in properties across cities like Hyderabad, Chennai, and Bangalore. NRIs have multiple options through digital solutions for enquiring about projects through live chats, virtual tours, and 3D walk-throughs.
The rules and regulations for NRIs to invest in Indian real estate are different; however, not complex as one might expect. There are no restrictions for NRIs to buy any commercial or residential property in India except for agricultural land, farmhouse and plantation property. To buy a residential property in India, one can also apply for home loans from housing finance institutions and banks that are registered under the National Housing bank.
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Although NRIs have a variety of investment options in India like fixed deposits and mutual funds, real estate remains one of their favourite options as it is an asset and also delivers high returns. Here is a checklist for NRIs who are looking to invest:
PIO/OCI card: This is one of the most important documents that should be in place if you are planning to buy a property in India. NRIs require an Indian passport to invest in property in India. PIO Card and OCI cards are issued to an individual who is currently a citizen of another country but has an Indian origin. In simple terms, it is equal to holding dual citizenship.
Registered power of attorney: Power of attorney gives the legal rights to someone who can help you with the execution of the sale, registration, possession and other processes. This document comes handy if you are an NRI and do not visit India frequently.
PAN card: NRIs do not need to have a PAN card for buying a property in India. However, it is recommended to take one as it comes handy in the future if they plan to sell the property or to file income tax returns if they wish to rent out the property.
Address proof: NRIs investing in Indian real estate need to submit the address proof of their current residence attested by the Indian embassy in the country of residence.
Apart from the above listed, you could do your research as well before you decide to invest in Indian real-estate.
The author is Vice President - Sales at Quikr Real-Estate
DISCLAIMER: Views expressed are the authors' own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.
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