Things NRI’S Should Know Before Investing in Real Estate in India

In recent years, buying a property in India for non-resident Indians (NRI’S ) has become safe, easy, and lucrative and this has become possible due to the initiative taken by the Indian Government towards real estate by the RERA act, which has brought more transparency in the real estate sector.

The NRI who are investing in India’s real estate can expect a high return on their investment if they have invested in the right property. If you are an NRI and want to invest in a real estate property in the city of joy, Kolkata, then check the properties of top real estate companies in Kolkata such as Rajwada Group, Srijan Realty, etc that are a perfect blend of luxury, comfort, and affordability.

Today let me highlight some important things that NRI should know before investing in real estate in India.

Types of property NRI can invest:

NRI can buy residential and commercial properties in India but they cannot invest in farmhouses, plantations, and agricultural properties unless they receive these above-mentioned properties as gifts or inherit them.

Foreign Exchange Regulation:

NRI’S who are interested in buying a residential or commercial property in India should adhere to FEMA (Foreign Exchange Management Act of India). Rules for buying a property in India have been simplified by the Reserve Bank of India for the NRIs. NRIs who hold a valid Indian passport need no approval for investing in real estate in India.

Choosing a Trusted Real Estate Developer:

Choosing a reputed real estate developer who has years of experience in the real estate industry is very important as NRI’S will not be physically present to check whether the property is a good investment or not and also to resolve any issue if arises. A reputed developer will focus on quality more than quantity and they have all the necessary clearances and certificates which will speed up the process of buying a residential property in India for the NRI. The top real estate developers in Kolkata such as Rajwada Group, Siddha Group, etc are the epitome of trust and quality. They have many flagship residential properties under their belts that are truly luxurious and affordable at the same time where you can dive into a pool of luxurious serenity.

Home Loan:

NRI’S are eligible for getting a home loan for buying a property in India. They can get a home loan of up to 80% of the value of the property they are buying. But, they need to repay the loan amount In Indian rupees (INR) only.

Mode of payment:

NRI’S can pay through inward remittance, NRE (Non-Resident External account) and NRO(Non-Resident Ordinary ) accounts, or FCNR (Foreign currency non-resident) deposit accounts.

Power of Attorney:

The NRI can transfer their legal rights to their relatives or trusted friends to complete all the procedures related to the property on their behalf of them. Power of Attorney can be used for leasing, mortgaging, selling, renting, etc.

Need to file IT returns in India:

NRI’S who will buy a residential property or a commercial one needs to pay the property tax, stamp duty, and registration fees as per Indian Laws. If you have any rental income in India it will be counted in Income tax and you need to hire a professional who will help you file IT returns in India.

These are the things that NRIs' Should know before investing in real estate in India.

Tanusree is a professional writer working in the real estate field for a long time. She has written many informative articles and blogs on "Real Estate". She has a large reader base that regularly follows her works.