A Guide for NRIs to buy Property in India (in Mumbai)
Mumbai - February 12, 2021
NRIs or Non-resident Indians are Indian birth, descent or origin who live outside the Republic of India. NRIs have played a significant role in the Indian real-estate market. They generally buy property in India either for investment purposes, or pure emotional connection to the country or for their parents or relatives who live here or even in case they plan to come back and live here, after they retire from their jobs.
If you are a Non-resident Indian, and contemplating investing in real-estate in India, you should take into account the advantages in doing so and the preparations or arrangements you might need to make, and the time you will need for the process.
Read on to find out more about these – this article will help pondering NRIs realize the benefits of investing in residential property in India and provide you the data you will need for the process.
The real estate market has been experiencing a boom in recent years due to a combination of the lowest home loan rate, low rate of Indian rupee, great offers and deals being introduced every now and then, easy availability of houses in developed areas, for a reasonable price etc which make sufficient reason for the non-resident Indian home buyers across the world to invest here. Add to this a propitious investment atmosphere, a spirited professional status and vigorously developing corporate ecosystem, which have urged even working professionals from countries like USA and UK moving back to work in India, and buy property to settle here.
Indian laws, over the years, have made buying real-estate property an uncomplicated job. The Reserve Bank of India governs transactions related to this and they fall under the purview of the Foreign Exchange Management Act (FEMA).
The implementation of RERA (Real Estate Regulation &development Act) in the past few years has strengthened the interests and credence of NRI buyers in the Indian real-estate. RERA is an act introduced by the Parliament of India to protect home-buyers as well as help boost investments in the real estate industry. This act addresses major concerns like lack of transparency in transactions, inordinate delays in project delivery, and the intent of the developers.
Mid-size and affordable homes are generally preferred the most (and are also the ones that you can lose quickly, given the high demand from NRIs and Indian residents alike) – as these are easily the best ones that you can get for a reasonable price in decent neighbourhoods of the city.
But since last year, especially due COVID-19 and its consequences – bigger and luxury homes like 3-bedroom and 4-bedroom homes have also been witnessing increased demand from NRIs. This is mainly because during the lockdown, spacious homes have garnered an increasing interest by home buyers owing to the whole work-from-home scenario – as all family members are either required to work from home or opting to do so, for safety reasons.
This has given rise to the need for more space, so each working family member can allot a dedicated space for themselves and work and attend meetings etc without disturbances within this.
As a non-resident, the idea of owning a home in your own nation has got to be comforting for most, as it provides them an option of a safe haven.
The first step to buying a property is to decide the location where you would like to own one. There are many incredible cities in India that are developing rapidly in many aspects, but one city that has attracted a large number of non-resident home buyers in the past couple of years is Mumbai.
Mumbai is the financial capital of India. From a professional viewpoint - many major businesses have their headquarters and offices in Mumbai. For people working in the IT sector, this is a great place for job opportunities. Apart from this, the major film industry of India, i.e. – Bollywood (or the Hindi film industry) also has its base here, and this city has ample opportunities for people in creative fields too – from acting to fashion, journalism, photography, food businesses and what not! This has given rise to investments in property in Mumbai by non-resident Indians.
A trend of affordable housing has also been going on in Mumbai and due to the pandemic now, it is at a more favourable rate, making this city all the more desirable for owning property in.
If you are an NRI wishing to buy property, have decided the location and other things but do not have the funds ready, you can apply for a home loan. RBI has now started granting permission to banks and housing finance institution that are currently registered with the National Housing bank which will then provide home loans for NRIs to buy residential property in India. But one thing to note is that it is required that all transactions be made in Indian currency only.
The loan however cannot be credited directly to the bank account of an NRI. It can only be disbursed to either the seller’s or the developer’s bank account directly.
There are some good real estate firms with significant knowledge and experience, that can help you find the perfect home, and also guide you with queries such as these, throughout the whole process.
CN Consultancy is a firm that deals in real estate specifically in Mumbai, in some greatly preferred neighbourhoods in Mumbai such as – Bhayandar, Mira Road, Dahisar, Borivali, Kandivali, Malad and Goregaon.