Why Giving Permanent Residency Status To Foreign Investors Is A Great Idea

According to a recent proposal approved by the Cabinet Committee on Economic Affairs (CCEA), foreign investors pumping in at least Rs 10 crore of capital in the country will be eligible for a residency status in India.  Initially granted for a period of 10 years, the status could be renewed multiple times.

According to an official statement, a foreign investor will have to invest at least Rs 10 crore within 18 months or Rs 25 crore within 36 months to avail of the benefits.

Under the proposal, such investors and their families would enjoy several facilities, including easier visa rules and employment opportunities, and the investor will have the right to purchase one residential property in the country. Investors' spouse and dependents will be allowed to take up employment in the private sector and enroll into educational institutions.

A move that is expected to fuel significant foreign capital in the system and create a great number of jobs, the new proposal will also help India's real estate in a big way. By allowing a foreign national to buy one residence in the country, the Centre would create a huge demand for high-end and luxury housing segments in the country. It has to be noted that in cities such as Gurgaon and Mumbai where the property is highly expensive, selling even affordable units has become a Herculean task for developers; selling houses in the luxury segment is another story altogether. Those who will be pumping in a capital of at least Rs 10 crore here would surely trigger demand in this segment. At a time when a liquidity crunch is troubling real estate developers, with many projects stalled at various stages of construction, fresh capital generated by fresh demand from high-net-worth individuals would give the much-needed support to the sector.

On the other hand, the move will also increase healthy competition. Many foreign players investing here would surely like to explore opportunities in India's real estate sector. Domestic players will have to work harder to match up to the global standards. As far as buyers are concerned, they will find a remarkable improvement in the quality of their houses.