The Indian economy has witnessed commendable progress in mitigating risk elements in the recent past, as opposed to many other emerging nations. Additionally, the present Government has devised some key policy steps that centre on real estate investment in India by NRIs and residents, including REITs - to enable the creation of an institutionalized exit platform for investors. While the process of investing in a Luxury Apartments in Mumbai has become a lot easier today, there are a couple of things people need to keep in mind. Before you go ahead and shift through the real estate developers and companies that you would like to go ahead with, you must refer to this guide to investing in property in India.
• Non-Resident Indians (NRIs)
A Non-Resident Indian (NRI) is a citizen of India who holds an Indian passport and has temporarily moved to another country for six months or more for employment, residence, education or any other purpose.
• Overseas Corporate Bodies (OCBs)
OCBs are overseas companies, partnership firms, societies and other corporate bodies chiefly owned by NRIs, directly or indirectly, to the extent of at least 60%.
• Foreign Companies and Foreign Nationals
Foreign Companies and Foreign Nationals must obtain permission from the RBI with respect to immovable property in India.
NRIs (and OCBs) require general or special permission of the RBI to purchase and hold immovable property in India. Applications for the purpose of making investments through purchase of shares/debentures are to be made to the RBI.
Foreign Companies and Foreign Nationals are also required to obtain permission of the RBI to acquire, hold, transfer, or dispose of in any manner (except by way of lease for a period not exceeding 5 years) any immovable property in India.
Yes, a resident of India requires prior permission of the Reserve Bank for acquiring or transferring any immovable property in India.
One may apply for a home loan after finalising the property to be purchased or constructed.
Home loan eligibility depends upon:
The RBI has granted permission to NRIs and foreign citizens of Indian origin to let out any immovable property in India. The rental proceeds or income of any investment of such income is not to be repatriated outside India at any time in future and such funds may be credited into the owner's Ordinary Non-Resident Rupee (NRO) account maintained with an Indian bank.
You cannot sell a property without proper registered document(s). A registered document is the authenticity and guarantee of the ownership over the property.