The real estate market in India has always seen significant interest from the Indian diaspora, as an investment avenue. With developers constantly trying to woo non-resident Indians (NRIs), they can choose from a variety of options, in the commercial and residential segments.

Buying and selling of property in India

An NRI can either come to the nation and buy or sell a property or give a POA (Power of Attorney) to a relative and get the transaction done, without travelling to India. NRIs can also get home loans in India. The documents for the home loan may vary, according to the nation in which the NRI is settled. Usually, the term of the loan will be 10 to 15 years, while the cost that the NRI is eligible for, will vary based on age, education, income, etc.

To finance the property’s investment, it is advisable to use a non-resident external account (NRE account), as this will assist the NRI to take back the capital invested in the property and land when they resell the property.

NRIs Investing for the future

This is the right time for NRIs investing in Indian real estate especially for those who are on the edge of retiring and thinking to settle in India.

• Social infrastructure in the utmost of large Indian cities has developed a lot while civic infrastructure is also being ramped up. As more hospitals, schools and shopping malls come up, and connectivity improves, it will give rise to better standards of living. This will directly enhance the quality of life after retirement.
• Once the primary residence is secured, NRIs can also use the surplus money, to invest in a second apartment or flat and use it to generate rental income. But, they must be aware of all the bye-laws and regulations that apply to NRI investors, especially concerning taxes, as rental income is taxable in India. It is also taxable in other countries, except in cases where an agreement exists between the two involved countries, with regards to double taxation.
• NRI investors should avoid projects by unknown real estate developers. Many buyers have fallen into difficulty, by putting their funds in projects that lacked compulsory clearances and fell short of even the limited standards of quality.
• Unless an NRI plans to travel India and evaluate projects, she/he should opt only for reputed property developers. In all cases, NRIs should strictly verify details, such as the track record and brand visibility of the developer, the social and civic infrastructure available in the location, the facilities in the project and the timelines for possession of a property, in the situation of under-construction projects.
• A property project that is targeted towards NRIs is no distinct from other offerings in the market. A property should be evaluated, solely on the basis of its location and facilities on offer, the legal validity of its title of the property and the developer’s brand image.

It is better to consult and hire the competent lawyers for legal advice before NRIs investing in India. Since In-depth research about the property would definitely bring out some shortcomings because of being away from the property. From title confirmation to the registration of the property, a property lawyer would help NRIs with all the legal formalities associated with a land deal. A property lawyer can check to make sure that the property titles are correct, house documents are registered appropriately and check that all paperwork related to the property is legal. However, while choosing a property lawyer, it is crucial to make sure that he or she is a certified and licensed lawyer.