NRI & Overseas Projects

NRI & Overseas Projects

No matter where you are, you must have realized that in today’s world real estate has become an integral part of one’s lifestyle. With the market booming and innumerable property options fluttering for settlers, real estate sector is witnessing/undergoing a tremendous change. Government new FDI (Foreign Direct Investment) Policy which allows NRI’s and PIO’s to invest in Indian real estate sector has also contributed to the change. The factors contributing to the rise in demand includes,

Permission to buy/sell residential, commercial and industrial land

 

Promotion of FDI’s and infrastructure support

 

No restriction on the number of properties

 

Easy finance options

 

Simpler repayment process like normal inward remittances of debt in their
NRO/NRE bank accounts

This made India among one of the most favored destination for investment through foreign funds. The new policies not only let NRI’s to own an immovable residential/commercial property in the country but also to transfer it, sell it & rent it out without any hassle. Banking sector is also favoring all this by helping NRI’s with various finance options such as home loan.


Estate Science offer services for a transparent and streamlined property buying process in India. Our experienced support personnel can assist you with identifying & building a property portfolio in emerging cities like Delhi, Gurgaon, Noida, Mumbai, Pune, Bangalore, Rajasthan, Gujarat, etc.


We assist our clients throughout the process from identification, handling specific documentation to property purchase in a city of your choice. Our on-going services benefits client by managing the property and taking care of the leasing process. . Also we assist our clients with selling of their plots and property and collude an exit strategy of their investments.

Property Purchase Guide to NRI's

Who is a Non-Resident Indian (NRI)?

An Indian citizen who stays abroad for employment or business or a vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a non-resident. Non-resident foreign citizens of Indian Origin are treated at par with Non-Resident Indian citizen (NRIs).

What are the lucrative property deals in India? Why should an NRI invest?

India is the third largest economy in the world in terms of purchasing power. Considered as a stable country for investment by the corporate world overseas, India offers various places for investment in residential and commercial properties for Indians living in foreign.

What returns will I get upon investment?

The mixed economy type in India allows both public and private sector to participate in the growth of the economy. This has led to an increase in demand for commercial properties in various areas. In this scenario, an investment definitely leads to higher returns.

What is an OCB?

Overseas Corporate Bodies (OCBs) are bodies predominantly owned by individuals of Indian nationality or origin resident outside India and include overseas companies, partnership firms, societies and other corporate bodies which are owned, directly or indirectly, to the extent of at least 60% by individuals of Indian nationality or origin resident outside India. In overseas trusts at least 60% of the beneficial interest is irrevocably held by such persons. Such ownership interest should be actually held by them and not in the capacity as nominees. The various facilities granted to NRIs are also available with certain exceptions to OCBs as long as the ownership/beneficial interest held in them by NRIs continue to be at least 60%.

Can NRIs and Overseas Corporate Bodies (OCBs) invest in India?

Investments by NRIs and OCBs are allowed through the RBI route and also through the Government route, i.e., through the Foreign Investment Promotion Board (FIPB). NRIs and OCBs are permitted to invest up to 100% equity in real estate development activity and civil aviation sectors. Investment, made by the NRIs and OCBs, are fully repatriable, except in the case of real estate, which has a 3 year lock-in period on original investment and, 16% cap on dividend repatriation. For those proposals that do not qualify under the automatic route, Government approval is granted through FIPB.

Is there a limit to the number of investment in acquiring commercial properties in India?

Most of the apartments are developed by developers so it will be handy to check the background of the developer, the builder, the designer, and the architect. You should always check if there have been any problems with their other developments in past. The financial position of the developer should be strong so that he could complete the project on time if the project is under construction, find out that the developer has the essential resource and building consents before paying anything. As far as quantity of NRI investment is concerned in real estate investment in India there is no limit on the number of investments can be made in commercial properties in India.

What is Foreign Exchange Management Act (FEMA)?

Residential status and nature of transaction i.e. capital account transaction (e.g. purchase/ sale of shares, property) or current account transaction (e.g. remittance of income on shares, property) are the cornerstones of FEMA. Under FEMA, certain types of transactions do not require RBI permission while others either require prior approval of RBI/ Government or it is mandatory to inform RBI of the same.

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