Introducing Real Estate Regulation Act (RERA) was the game changer in the realty market along with GST which unified taxes. RERA was specifically introduced to regulate the discrepancies in the real estate market. It stress accountability in financial disclosure, timely possession of projects and maintaining a good standard of practices. The government also has many incentives for the NRI’s like tax benefits and in Foreign Direct Investment (FDI).
More specifically, the current real estate market of Navi Mumbai is very promising to NRI’s due to it locational and infrastructural advantages. There are many lucrative options available for the NRI investors like the Projects in Kharghar or Flats in Ulwe.
The Confederation of Real Estate Developers Association of India (CREDAI) also holds many events that showcase the projects of Real Estate Developers in Navi Mumbai to facilitate the growth of the sector. They offer less down payment and easy investment options in both the commercial and residential market.
Below is a short guide for the NRIs investing in the Indian real estate market.
According to the Foreign Exchange Management Act, any Indian citizen residing outside the country can own any property in India apart from agricultural/plantation property or a farm house. On the same note, Reserve Bank of India also permits real estate investments by NRI’s through Foreign Direct Investment route. There is no limit on the number of properties commercial or residential that an NRI can buy.
NRI’s should avoid investing projects from unknown developers. They should do research before zeroing in on the builder. For instance, if they are looking to invest in a property in Taloja, they should check the following points:
- What are the builders available in the area?
- Are they registered with RERA and other institutions like CREDAI or the BAI?
- Do they have the necessary approvals for the Taloja Projects?
- Do they deliver the project on time?
- What is their market value?
- Do they offer the amenities promised in the brochure?
- What are the locational advantages of the area?
- Is there a potential for an increase in the property’s value or rise in rental income?
- Do the builders use quality products for construction? and many more questions to determine whether the builder is trustworthy.
Non-resident Indians can either make a full payment or can borrow from banks to finance their purchase. Most banks offer up to 80% of the purchase price of the property. The NRI’s can finance the purchase through their NRE, NRO, FCNR accounts. NRIs can also avail loans for home renovations and restorations.
In case if the property is under construction, the NRI’s have to give power of attorney to the builders or a trusted person who can take decisions on behalf of the NRI.
Real estate investments are a big step even for Non-Resident Indians and the government has taken steps to ensure to make that process transparent and easier. However, it is best to do proper research and know the options before purchasing a Property in Taloja or anywhere in Navi Mumbai.