5 Quick Tips For NRIs Planning To Invest In Indian Realty

As the green shoots of recovery start showing up in India's real estate sector, investors — who remained passive for a couple of quarters, show PropTiger DataLabs trends — are coming back again. Experts also believe that investments in Indian property markets by non-resident Indians (NRIs) is likely to go up after the implementation of key legislations, including the Real estate (Regulation & Development) Act, 2016 and the Good and services Tax.

If you are one of those NRIs who is planning to tap India's real estate to grow your investments, here are five quick tips to help you proceed:

• Real estate purchases by NRIs fall under the jurisdiction of the Foreign Exchange Management Act (FEMA) while you have to approach the Reserve Bank of India (RBI) for approvals, etc. It is better to well-acquaint yourself with rules and regulations relating to real estate purchases in India before you start looking for a property purchase.

Also read: NRIs Remain Unaffected By The Demonetisation Move

• You do not require any prior permission to buy immovable property in India, except if you plan to buy agricultural land, farm house or plantation property. You will need an approval from the RBI for investing in these specific properties. It is only after a consultation with the government that the Central bank will give you a go ahead. This means that the process for investing in agricultural land, etc., might be longer.

• There are also no restrictions on the number of immovable properties that an NRI can purchase for either residential as well as commercial purposes.

Also read: Explaining NRI Investments In India's Real Estate

• You can apply for a loan from all banks and housing finance companies (HFCs) registered with the National Housing Bank for buying residential property in India. The loan will be issued in the Indian currency and has to be paid in using the Rupee only. The loan amount will be disbursed to the seller's or the real estate developer's account.

• Do not have a PAN (permanent account number) card? There is nothing to worry. According to the new rules notified by the Central Board of Direct Taxes, an NRI investor can furnish his personal details if he does not have a PAN card.