The Indian real estate scenario is experiencing an abrupt surge in the overall demand for high-end homes. Amid the exclusive aspects following this surge in demand is the increasing number of NRIs returning, first generation industrialists who are booming in their new set-ups, startup organizations and multinational companies employing emigrants for their growth in the country. Contrasting the previous scenarios, it is the buyers who are controlling the real estate sector now.
The demand mainly is around parts of the country where vast piece of land area is available thus making it promising for builders to provide an all-inclusive array of amenities that have not been heard about in any such housing project.
The demand from corporates for accommodation for emigrant employees has also called for the requirement for high-end homes constructed with international standards which these expatriate are used to. Apart from this, the corporates are also eager to pay lofty rentals for such properties to offer the precise ambience for such employees during their tenure in the country.
The boost in demand for such homes is majorly coming from the IT sector because of the improved connectivity levels and the accessibility of high-end homes in parts nearer to MNCs. In Bangalore, quite lot of villa projects are speeding up the construction process which are estimated to be around the price range of Rs 1.5 crores and a few more are coming up in proximity to Whitefield and Old Madras Road which is another indicator to the spurt in demand for high-end projects.
One of the biggest reasons behind this spurge is the keen interest of the investors who are keeping a tab on the rise in demand for high-end homes and the resulting rentals. Wherever enhanced connectivity options are visible and the vicinity is good enough, the demand keeps on increasing for such homes in the country.
Developers who are developing high-end homes state that most of the queries they get are from businessmen, senior corporate executives and high net worth individuals. Some of them are even keen to invest in a second home. Expatriates are also interested in buying such homes but due strict documentation laws, they normally choose to go for a lease rather than out-and-out buy.
As per the ruling of the Foreign Exchange Management Act (FEMA), nationals of foreign origin who are residing in India can invest in only one residential property once they get sanctions agreed upon by the concern authorities like the State government.
Foreign diplomats can buy and sell any property other than agricultural land, plantation property and farmhouse in the country with aforementioned approval from the Government of India. The payment should be made only through foreign inward remittances by the means of normal banking channels.
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Laws that make it simple for NRIs to buy property in India
Property in India has always offered best returns on investments made by non-resident Indians (NRIs) and persons of Indian origin (PIOs). The Indian Government permits NRIs to buy or sell property in India.
The property acquisition or transfer by NRIs should be in accordance with the guidelines laid down by the Foreign Exchange Management Act (FEMA). NRIs should always purchase a property through a registered sale or conveyance deed. Laws also permit that they can buy a property on a power of attorney. In the second condition, an agreement to sell and a power of attorney are transferred by the seller in the name of the buyer.
PERMISSION FROM RBI NOT REQUIRED
As per the current legislative system, NRIs do not need to seek permission of the Reserve Bank of India (RBI) to buy any residential or commercial property in the country. RBI has stated in its ruling that foreign citizens of Indian origin, whether resident in India or abroad, have a general permission to buy property in the country for their bona fide residential purposes. The bank has also regulated the payment options which can either be made through inward remittances in foreign exchange through normal banking channels or out of funds in a NRE or FCNR account maintained with a bank in the country.
DECLARATION COMPULSORY
NRIs who purchase any residential property in India as per the general permission are bound to file a declaration with the central office of the RBI at Mumbai. This declaration should be made within 90 days from the date of purchase of the property or final payment of amount. It should consist of a certified copy of the document as a proof of the transaction and a bank certificate concerning the money disbursed.
SALE ALLOWED
The RBI has also stated that the property bought by NRIs can be sold without its permission. Although in case of a NRI, the amount raised from the purchase should either be remitted to India or paid out of the balance in a NRE or FCNR account.
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