Legal Service India - Downward trend of Indian Real Estate - A boon for NRI’s
law  in India

Downward trend of Indian Real Estate - A boon for NRI’s

Written by: Tushar Balakrishna Bungley - Legal Advisor at Pan India portal www.100floors.com funded by Suksh Technology P Ltd
click here for LIVE help-desk
Chat with us  (2 PM - 9 PM IST)
Legal Advice | Find a lawyer | Constitutional law | Judgments | forms | PIL | family law | Cyber Law | Law Forum | Income-Tax | Consumer laws | Company laws
Search On:laws in IndiaLawyers Search

Copyright Online in India
Right from your Desktop - Ph no: 9891244487

Home \ Company Law

Articles | Articles 2014 | Articles 2013 | Articles 2012 | Articles 2011 | Articles 2010 | Articles 2009 | Articles 2008 | Articles 2007 | Articles 2006 | 2000-05

Current Position of the Real Estate Sector

Indian real estate sector has suffered a huge blow because of the global recession resulting in factors such as jobs cuts, salary cut for certain sectors of the economy, stringent measures by the banks in granting of loans to home finance consumers, etc , which has resulted in a downtrend for the real estate sector in India. Most affected are the real estate developers, who are forced to reduce the prices of their projects to bring back the uptrend of Indian real estate. Builders are trying to see that no stones are left unturned.

How it can be a boon to NRI’s?

This downward trend in the real estate sector could be quite beneficial to the Non-Resident Indians, who are in dilemma over investing their money. The local accommodation laws for NRI’s in the Gulf countries & West Asia have compelled several NRI’s to send their families back home due to raising housing costs. This has inturn resulted in NRI’s investing in Indian real estate to meet any contingencies. On the other hand, the downward trend back home has helped the NRI’s to invest in properties like land, residential & commercial projects.

Factors such as the Foreign Direct Investment in realty sector, relaxation of laws by RBI with regard to investment of property by the NRI’s would facilitate the NRI’s to invest in Indian real estate. However there are certain government regulations which prohibit investments in categories like agricultural land, farmland/farmhouse and plantation properties. Those who have inherited such property from relative can retain them. But to dispose them off, one needs to follow certain ground rules laid down by the authorities.

For NRI who are planning to return home, investments in residential property would be the best option. As NRIs have been accustomed to living in places with good infrastructure facilities, investments in housing should be in cities which have educational, health and reemployment opportunities. NRIs could plan well to invest in Greenfield projects which will reduce upfront payment liability .Home loans are available and banks have branched out to several countries to extend facilities to NRIs.

With Foreign Direct Investment in real estate sector, residential townships with world class amenities will usher in the major cities with global standards, integrating facilities like schools, mall, multiplex, office etc within the same complex.

Where can NRI’s invest?

Investments in developed plots are yet another option for those seeking medium to long term options. Land value appreciates much faster than apartments in Indian cities. Those NRIs who are looking for investments purely as an investment option should consider peripheral or suburban areas where potential for land price appreciation is higher.

For high net worth NRIs looking for periodical rental income, city properties would be the best option due to the demand for such units from varied sections of people including corporate, MNCs and serviced apartment operators. Tax soaps are available by way of interest rate concessions up to Rs 1.50 lakh and principal repayment upto Rs 1 lakh if home loans are availed to invest in immovable property. Wealth tax benefit is available if the residential property is let-out for a minimum period of 300 days in a calendar year.

Commercial property is yet another option for those in the high income bracket and who can invest substantially in either office or retail units. Though current rental levels are dipping in view of the spurt in supply levels in select areas across the city, investments in green buildings or with better amenities would enable investors to obtain competitive rentals over a period of time. Commercial properties are completely exempt from wealth tax as the threshold limit for wealth tax is still retained at Rs 15 lakhs.

Repatriation of investments in property is allowed upto two residential units after a lock-in-period of three years to the extent of original foreign exchange remitted through banking channels. NRIs can invest in real estate development both on repatriation and non-repatriation basis. Joint Development of the property with reputed Indian builders and foreign investors could be strategic alliances beneficial to NRI’s.

Conclusion:
Thus this downward trend would help the NRI investors as well as the builders and the developers. NRI’s can make use of the downtrend market situation and developers can bring an upward trend of the Real estate sector in India.

The author can be reached at: tusharbungley@legalserviceindia.com / Print This Article

Lawyers

Lawyers Search

• Find a lawyer
• Know your legal options
• Information about your legal issues

File Mutual Consent Divorce

Right Away
Call us at Ph no: 9650499965
Copyright Registration Online Right from your Desktop...
*Call us at Ph no: 9891244487

Legal Advice

Get legal advice from Highly qualified lawyers within 48hrs.
with complete solution.

    Your Name                Your E-mail
          

Legal Service India

lawyers in Delhi
lawyers in Chandigarh
lawyers in Allahabad
lawyers in Lucknow
lawyers in Jodhpur
lawyers in Jaipur
lawyers in New Delhi
lawyers in Nashik
Contract laws
Protect your website
Army law
lawyers in Mumbai
lawyers in Pune
lawyers in Nagpur
lawyers in Ahmedabad
lawyers in Surat
Faridabad lawyers
Noida lawyers
lawyers in Dimapur
Trademark Registration in India
Woman issues
Famous Trials
lawyers in Kolkata
lawyers in Janjgir
lawyers in Rajkot
lawyers in Indore
Gurgaon lawyers
Ghaziabad lawyers
lawyers in Guwahati
Protect your website
Law Colleges
Legal Profession
Transfer of Petition
Lawyers in India - Search by City legal Service India
lawyers in Chennai
lawyers in Bangalore
lawyers in Hyderabad
lawyers in Cochin
lawyers in Agra
lawyers in Siliguri
Lawyers in Auckland
Cause Lists
Immigration Law
Medico Legal
lawyers in Dhaka
lawyers in Dubai
lawyers in London
lawyers in New York
lawyers in Toronto
lawyers in Sydney
lawyers in Los Angeles
Wills
Cheque bounce laws
Lok Adalat, legal Aid and PIL

About Us | Privacy | Terms of use | Juvenile Laws | Divorce by mutual consent | Lawyers | Submit article | Lawyers Registration | Sitemap | Contact Us

legal Service India.com is Copyrighted under the Registrar of Copyright Act ( Govt of India) © 2000-2015
ISBN No: 978-81-928510-0-6