India - An Investment Destination
The policies regarding the property investment in India are making foreign investment easy in India. Under these relaxed circumstances, NRIs and persons of Indian origin can easily invest in India.
NRIs are liable to acquire, rent, transfer or sell their properties in India. Though, it is not allowed to acquire agricultural lands, farmhouses, etc. for commercial purposes. As government has allowed 100% repartition, they can do the capital investment, rental income on property in India, as per the foreign exchange norms.
The PIO or NRI can use or acquire the immovable funds or property over the option of getting a purposeful loan from the bank. The NRI funds received in India are a kind of inward payment from abroad, personal savings in India. Such funds are supposed to be paid through Non-resident ordinary, non-resident external or any of the foreign currency bank accounts.
However, they can pay for the sale from outside India without any approval from RBI. The payment procedure for subsequent properties normally needs a formal approval from RBI. In any case, when the property has been acquired from Indian rupee funds, the payment totally depends upon the holding period of the property.
Housing (residential property) – the formal cost of mortgage rate has been decreased from 18 to 8% in last 5 years.
Industrial (commercial space) – In all metropolitan cities, the IT space has been leased and this trend is increasing widely.
Shopping (retailing site)– The property investment for shopping and retailing sites is increasing, as Indian customers are showing interest in foreign brands. It is expected to increase over the coming years.
Hotels (Hospitality spaces) – International and national vendors are showing a great interest to invest for hotels and hospitality.
This is a well known fact that real estate project costs across the world are sinking quickly, but in India, it has a bright future!
As per the research, the estimated size of Indian Real estate sector is just 2% lesser, when we compare it with the mature economies.
Recent relaxation in FDI norms have introduced gainful phase to Indian Economy. The government is trying to liberalize the rules to promote foreign investments.
Estimated growth of Indian real-estate sector is 30%, and would grow owing the related growth drivers and the FDI norms.
In coming 10 years, the real estate sector has the potential to reach the count of multi-billions.
In the year 2005-2006, as per the estimate, over 5-million homes were sold.
Sales are expected to cross the number of multi-millions, in upcoming 5 years.
As per the trend of owning second homes or multiple exclusive properties located near to religious centers, hill stations, waterfronts, etc. is growing fast.
Why real estate is becoming best investment bet?
The Indian property investment industry is doing great and offering a wide range of investment options. Availability of easy home loan by renowned financial organizations in India has also been emerged, which is luring NRIs to return back to their mother nation to invest in properties in India.
The Indian real-estate development sector is going through a self-organization from being an unorganized sector. This factor is leading India and transforming it to be one of the most favored destinations for property investments through funds and FDI.
Everyone knows that India has a great real-estate marketing potential! Being one among the biggest economies in across the world, as it is ranking above countries like Russia, France, The United Kingdom, and Italy. India is the third-most largest GDP across Asia and is the second-most growing nations.