In the past two years, the effect of Covid-19 has been felt in almost all sectors. And the real estate sector is no exception. However, it is believed that 2022 will be an exciting year for NRIs to invest in real estate in India now that the world is opening post the Covid-19 pandemic.
But what exactly does one need to do before investing in real estate in India? If you're an NRI, or even a citizen, and looking to buy properties in India, we will provide you with the complete document checklist in this article.
The Indian real estate market is flourishing, making it an exciting investment option not just for Indian citizens but also for non-residents of India (NRI). As a result, NRI investment in real estate in India is increasing each day. With the rapid rise in infrastructural development, the Indian property market is in full swing, making NRIs eager to explore the Indian market. However, they tend to take a step back because of certain concerns. Although these concerns sit on the table, the risks can be minimised with adequate research and careful verifications. Hence, it is imperative that you complete your research before investing in a property.
Common Concerns of NRIs While Investing in Real Estate in India
Are you an NRI? If yes, you might have several concerns while planning to invest in real estate in India. Here is the list of potential concerns that you, as an NRI, might have while looking for property for sale in India:
- Search for trustworthy builders who can guide you at each step.
- Incompletion of projects.
- The long process of paperwork, investments, and authorisations.
- Overall maintenance of the property.
- Search for a skilled Indian lawyer.
- Leasing or re-leasing.
- Inability to travel at fixed intervals.
- Condition of the property.
- Bad or even dead investments.
In order to throw these concerns out of the window, it is essential to stick to the checklist.
As per Indian law, when it comes to buying property in India as an NRI, you are not allowed to buy farmhouses, agricultural land, and other such properties.
Checklist To Follow Before Making The Final Choice
If investing in a property in India is on your list anytime soon, you need to have a checklist before making your final choice. The first step to buying property as an NRI is to follow a checklist as suggested below. This would make it easier for any NRI to invest in real estate without many concerns.
Hire a lawyer
When you step into buying properties, you need to have a trustworthy lawyer who can guide you at every step, especially in financial and legal matters. A lawyer could help you close a deal smoothly without any legal trouble. To help understand the process better, you could read about the laws that govern the real estate industry in India.
Payment of tax
If an NRI decides to invest in Indian property, they are liable to pay tax on it. The tax will be calculated in the same manner as it will be done for any Indian citizen. However, as per Section 80 of the Income Tax Act, 1961, a non-resident of India can ask for deductions in the registration fee, stamp duty, and head reimbursement. These are generally charged during the time of purchasing the property.
Since you are going to invest in a property, you should keep all your documents handy. All the necessary documents that an NRI requires while investing in India are as follows:
- PAN card (Permanent Account Number)
- PIO or OCI card (for PIO and OCI)
- Passport-size photographs
- Passport (for an NRI)
- Address proof
This step is crucial if you have taken a home loan to invest in a property. The down payment can be easily paid through cheques from an ordinary non-resident account, a foreign currency non-repatriable account, or cash.
- Know your property type
As mentioned earlier, NRIs are not allowed to invest in plantations or agricultural land in India. So, it becomes even more important for them to be aware of their choices. There have been cases in the past where residential properties have been constructed on agricultural land. In such a situation, the investment will be deemed illegal.
Whether you're an Indian citizen or an NRI, RERA status is a must-have before you decide to invest in a property. In India, all projects are assigned a RERA number. Hence, make sure you have a detailed conversation about this with your builder.
While investing in a property, you should do your research on the real estate developer of your property. Make sure you know about their past projects, as it will give you an understanding of whether these projects are in sync with your choices. It is suggested that you should be physically present while checking all the amenities while selecting a property.
Apart from these, there are some other points too which require adequate attention.
Buying a property is a huge decision. It is an investment that requires adequate research and time. So, if you're thinking of investing in real estate in India in 2022 or in the coming years, this is an incredible time to do so! India's real estate economy is not just flourishing, but it also promises great returns. Look for a trustworthy developer and make your dream of having a real estate investment in India under your investment portfolio. For the best deals, check out the properties on offer by Adani Realty.
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Traditionally, real estate has always been a safe investment compared to other investments, and currently, the Indian real estate industry is at the pinnacle of success. This sector has become a hot favourite for investments for NRIs. Today, they have an option of investing not only in industries such as the manufacturing of medicinal drugs, EVs, IT, hotels, etc., but also in commercial and residential real estate industries.
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