Information That NRIs Need For Buying Real Estate Property in India

In the case of NRIs there is a general permission to acquire any immovable property (other than agricultural land, plantation or farm-house property) by way of purchase, provided the payment is made out of foreign exchange inward remittance or any Non Resident bank account in India, i.e. Non Resident External Account – NR (E), Foreign Currency Non Resident Account – FCNR or Non Resident Ordinary Account – NRO account. Although immovable property is not defined, the same will include:

• Residential property being house property, bungalow, apartment, villas and all other kinds of residential properties
• Commercial property being shops, offices and show rooms
• Industrial property being factory premises and godowns
• Land for construction of any of the above properties

Acquisition can be made by way of

• purchase
• receiving the property as a gift
• inheritance, and
• share of joint property received upon partition of family or property.

Transfer: Although transfer is not defined under the Regulations, but the definition of FEMA, 99 [Sec. 2(ze) of F.E.M.A. 1999] will apply & include:

• sale for consideration
• exchange of property
• gift of property
• relinquishment of right in a joint property.

Repatriation of Sale proceeds: An NRI being an Indian citizen or a foreign citizen of Indian origin is allowed to repatriate the sale proceeds of an immovable property subject to the following conditions:

• the acquisition should be in accordance with the existing Foreign Exchange Laws (i.e. FERA, ’73 or FEMA ’99).
• the purchase price was met out of Foreign Exchange Inward Remittance or NRE / FCNR (B) account, and
• in case of residential properties, repatriation is restricted to a maximum of two properties.

The NRIs who are staying abroad may enter into an agreement through their relatives by executing the Power of Attorney in their favour if it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or developer, drafting and signing of agreements and taking possession). Rental income cannot be remitted abroad and will have to be credited to the ordinary non-resident rupee account of the owner of the property.

George Gonigal provides you the best and latest info on India Property and Real Estate India. He would also let you know about Real Estate in Gurgaon for NRIs.

Properties For Sale in India

A fundamental real estate investment mantra in India is that emerging localities are preferable to established and often saturated ones. Expressing their views on real estate markets in the year ahead, property consultants say that established areas eventually reach a peak in terms of appreciation potential, after which the growth rate either slows down or stagnates, moreover, there is little scope for new market drivers such as malls to find a place in saturated localities-where, property prices remain high.

According to property consultants Jones Lang LaSalle, this is not the best of scenarios from an investment point of view, since optimal investment requires low entry levels and appreciable growth within a realistic time-frame. Therefore, as one or the other destination reaches its peak potential on all these counts, new ones come into the limelight. Here is an overview on some emerging Properties for sale in India:

. Chandigarh: Though there has been a lot of speculation on Punjab’s real estate market, Chandigarh is among the emerging cities that are seeing very encouraging real estate trends. It is India’s first planned city, and it conforms perfectly to the key parameters by which we judge a city’s growth – property market, people, physical infrastructure, social infrastructure, and business environment. Areas where properties are available for sale include Panchkula (Rs. 2500-3000/sq.ft.), Mohali (Rs. 1500-2500/sq.ft, Dera Bassi (Rs. 1300-2000/sq.ft.) and Zirakpur (Rs. 2700-3200/sq.ft.).

. Indore: Indore’s Real Estate star is fundamentally on the rise, and offers good investment opportunities in project with low entry cost that are located in an area with good appreciation potential. Areas where properties are available for sale : Vijay Nagar (Rs. 3000 – 10000/sq.ft.), Bypass, A B Road (Rs. 3000 – 10000/sq.ft.), Rau (Rs. 600 – 1200/sq.ft.), Gulmohar Colony (Rs. 3500 – 6500/sq.ft.), Green Park Colony (Rs. 800 – 3500/sq.ft.).

. Nashik: Nashik is displaying an increasingly buoyant industrial scenario, with considerable growth expected in the IT/ITES industry. Overall infrastructure and connectivity Mumbai and other regional towns is improving rapidly, lending increased credibility to Nashik’s real estate market. It is a vertex of the Pune-Mumbai-Nashik Urban Golden Triangle.

George Gonigal provides you the best and latest information on Real Estate News India, if you want to Buy Apartments in India. He suggest you visit magicbricks.com