The Indian real estate market is booming, making it an exciting investment option not only for Indian citizens but also for non-residents of India (NRIs). As a result, investing in real estate in India remains the preferred investment option for NRIs as it offers a wide range of location options, a thriving economy and the potential for significant returns. With the rapid increase in infrastructure development, the Indian property market is in full swing, making NRIs eager to explore the Indian market.
Many non-resident Indians (NRIs) are encouraged to return to India or invest in real estate as a safe investment option because of the attractive offers made by real estate companies in India.
Several other elements, such as attractive discounts, the weak rupee, and the market downturn, have recently contributed to the significant increase in NRI investments in the Indian real estate market. The falling rupee and the unpredictability of other investment opportunities have made real estate in India an attractive and safe option for NRIs.
Although these concerns are on the table, the risks can be minimized with adequate research and careful validation. Therefore, you should complete your research before investing in a property.
This blog provides the complete information checklist for NRIs before investing in real estate in India.
Common Concerns of NRIs When Investing in Real Estate in India
Are you an NRI? If yes, you may have many concerns about investing in real estate in India. Here is a list of potential problems when looking for residential/commercial property for sale in India as an NRI.
- Search for a real estate consultant company who can guide you at each step.
- Projects should have been completed on time.
- The long process of paperwork, investments, and authorizations.
- Overall maintenance of the property.
- Search for a skilled Indian lawyer.
- Leasing and re-leasing are two different things.
- Inability to travel at fixed intervals.
- Condition of the property.
- Bad or even dead investments.
While it is true that some builders have duped customers, several builders in India follow the complete legal procedure and are honest with the business.
NRIs can easily ensure they can safely invest in India by doing a few checks. Follow the checklist to address these concerns.
As per Indian law, when buying property in India as an NRI, you are not allowed to purchase farmhouses, agricultural land, or other such properties.
Checklists for Investing in Real Estate in India:
If investing in property in India is something you want to do soon, you should make a checklist before making the final decision. The first step in buying property as an NRI is following the checklist below. This will make it easier for any NRI to invest in real estate without worries.
Hire a lawyer
When buying properties, you need a trustworthy lawyer to guide you at every step, especially in financial and legal matters. A lawyer could help you close a deal smoothly without any legal trouble. To help understand the process better, you could read about the laws that govern the real estate industry in India.
Payment of tax
If an NRI decides to invest in Indian real estate, they must pay tax. The tax will be calculated in the same manner as it will be done for any Indian citizen. However, per Section 80 of the Income Tax Act, 1961, a non-resident of India can ask for the registration fee, stamp duty, and head reimbursement deductions. These are generally charged when purchasing the property.
Documents needed
Since you will invest in a property, you should keep all your documents handy. All of the necessary documents that an NRI needs to invest in India are as follows:
- PAN card (Permanent Account Number)
- PIO or OCI card (for PIO and OCI)
- Passport-size photographs
- Passport (for an NRI)
- Address proof
Down payment
This step is crucial if you have taken a home loan to invest in a property. The down payment can be quickly paid through cheques from an ordinary non-resident account, a foreign currency non-repatriable account, or cash.
Know Your Property Type
As mentioned earlier, NRIs cannot invest in plantations or agricultural land in India, so it becomes even more critical for them to be aware of their choices. In the past, residential properties have been constructed on agricultural land, and the investment would be deemed illegal.
RERA status
Whether an Indian citizen or non-resident Indian, this is essential. Every project in India under development must be certified by the Real Estate (Regulation and Development) Act, 2016 (RERA). As a result, you must inquire about the project's RERA registration to determine whether the property is legitimate. So, ensure you and your builder have a detailed talk about it.
While investing in a property, you should research a reputable builder. Make sure you know about their past projects, as this will give you understand whether these projects align with your choices. You should be physically present while checking all the amenities and selecting a property.
Conclusion
Buying real estate property in India is a huge decision. This is an investment that requires thorough research and time. So, if you are considering investing in real estate in India in 2024 or the following years, now is a good time! India's real estate market is booming and offers high ROI. Look for a reputable real estate consultant and add it to your investment portfolio. Suppose you are an NRI and want to invest in real estate in India. Consider investing in real estate with the help of a top real estate company in India.
