Non-residents Indians [NRIs] have recently begun to show immense interest in the real estate market of India. A lot of NRI funds are coming to India, through various channels, to be invested in the real estate industry, as these NRIs want make the most of the opportunities offered by the growing real estate market in India.
We cannot ignore the important aspect of India's government in promoting real estate. The Indian government has played a major role in supporting the growth of the real estate sector by allowing NRI investment and Foreign Direct Investment [FDI] in real estate. With an exceptionally good return on the investment, the real estate sector has become the preferred choice of most of the investors.
Various lucrative avenues are being created and offered to invite maximum investments from abroad. The NRI section has responded quite positively, showing keen interest in India's real estate market. NRIs are investing a lot in residential and commercial properties to cash upon the increasing property demands.
NRIs are also allowed to participate in real estate investments by way of huge investments in the construction of residential and commercial projects, development of townships at city and regional level, constructing infrastructure facilities like roads and bridges in urban areas and investment in participatory ventures. The status of an NRI as a property owner is not much different from the Resident Indian; just like any other property owner, NRIs pay property tax to the concerned authorities, though NRI property tax is slightly different from what Indian residents pay.
NRIs also get complete support from the financial institutions and banks for the finance required for the purpose of investment in properties in India. NRIs are eligible for availing a home loan facility to purchase a property in India; in fact they are considered as quite a safe profile due to their good repayment capacity. As far as the process of the repayment of the home loan is considered, it can be made through a normal banking channel by way of inward remittance. It is also possible to repay by way of direct debit into the accounts of Non-residents (External) [NRE] or Non-resident Indians who earn an income in India through rent, dividends, pension, etc [NRO]. Online banking in India, and these special accounts for NRIs, have facilitated transactions for any kind of NRI investment in India.
It is a good sign that the NRI’s trust in the real estate market of India and consider their investments to be safe and rewarding. Any kind of NRI fund inflow to India generates a lot of interest in the country, which further helps to boost the market.