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Why Invest In Indian Real Estate

The Real Estate sector globally remains one of the robust forms of investment for those looking for long-term appreciation and a steady income through rentals, leases, and so on. India, along with its population and demand for residential and commercial spaces is seeing immense growth in the sector, which is bound to be worth $1.5 trillion by 2034. These growth opportunities are also credited to a growing populace with a larger disposable income looking for healthy investment opportunities. Kolkata, a fast-growing metro city, is seeing a burgeoning growth in real estate with opportunities in residential and commercial spaces alike, with a y-o-y growth of 17% as per industry estimates.

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"They meet the timelines quite well. I have even heard they have given possession to some of the properties well in advance of the deadline, so those things were really suited."

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"They meet the timelines quite well. I have even heard they have given possession to some of the properties well in advance of the deadline, so those things were really suited."

FAQs

Under the general permission granted by RBI, the following categories can freely purchase immovable property in India:

Non-Resident Indian (NRI)- who is a citizen of India residing outside India

Person of Indian Origin (PIO)- who is an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan), who

At any time, held an Indian passport or

Whose father or grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).

The general permission, however, covers only the purchase of residential and commercial property and not of agricultural land/plantation property/farmhouse in India. OCIs can purchase immovable property in India except agricultural land/plantation property/farmhouse.

  • PAN card (Permanent account number)
  • OCI / PIO card (In case of OCI / PIO)
  • Passport (In case of NRI)
  • Passport size photographs
  • Address proof
  • Income proof (in case of loan application)

No. An NRI / PIO who has purchased residential/commercial property under general permission is not required to file any documents with the Reserve Bank.

How many residential/commercial properties can NRI/PIO purchase under general permission?

There are no restrictions on the number of residential/commercial properties that can be purchased.

No

Yes, but the person concerned would have to obtain the approvals, and fulfill the requirements if any, prescribed by other authorities, such as the concerned State Government, etc However, a foreign national resident in India who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval of Reserve Bank. Such requests are considered by the Reserve Bank in consultation with the Government of India.

Payment can be made by NRI/ PIO out of (a) funds remitted to India through normal banking channels or (b) funds held in NRE/ FCNR (B)/ NRO account maintained in India No payment can be made either by traveler's cheque or by foreign currency notes. No payment can be made outside India.

Yes, such loans are subject to the terms and conditions as laid down in Schedules 1 and 2 to Notification No. FEMA 5/2000-RB dated May 3, 2000, as amended from time to time. However, banks cannot grant fresh loans or renew existing loans over Rupees 20 lakh against NRE and FCNR(B) deposits either to the depositors or to third parties [cf. A.P. (DIR Series) Circular No. 29 dated January 31, 2007].

Such loans can be repaid

(a) By way of inward remittance through normal banking channels or

(b) By debit to his NRE / FCNR (B) / NRO account or

(c) Out of rental income from such property

(d) By the borrower's close relatives, as defined in section 6 of the Companies Act, 1956, through their account in India by crediting the borrower's loan account.

NRI/ PIO may repatriate the sale proceeds of immovable property in India

(a) If the property was acquired out of foreign exchange sources i.e. remitted through normal banking channels by debit to 'NRE I FCNR

(B) account The amount to be repatriated should not exceed the amount paid for the property:

1. in foreign exchange received through normal banking channels or

2. by debit to NRE account foreign currency equivalent, as on the date of payment or debit to FCNR (B) account.

Repatriation of sale proceeds of residential property purchased by NRI/ PIO out of foreign exchange is restricted to not more than two such properties. Capital gains, if any, may be credited to the NRO account from where the NRI/PIO may repatriate an amount of up to USD one million, per financial year, as discussed below.

(b) If the property was acquired out of Rupee sources, NRI or PIO may remit an amount up to USD one million, per financial year, out of the balances held in the NRO account (inclusive of sale proceeds of assets acquired by way of inheritance or settlement), for all the bonafide purposes to the satisfaction of the Authorized Dealer bank and subject to tax compliance.

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