As a Non-resident Indian, if you are looking for lucrative investment opportunities, there is nothing better than real estate. Foreign Investment in India's real estate is highly encouraged. The Indian real estate market is expected to reach 8.48 US Billion Dollars by 2024. There couldn't be a time better than now to invest your saved pennies with a safe bait.
Let us understand the RBI guidelines for Foreign Investment in India's Real Estate Market:
- Purchase permission for residential/ commercial property.
- No permission is required for NRIs holding Indian passports.
- NRI's with foreign passports have to intimate RBI by filling IPI 7 form. This should be done within 90 days of a property purchase or consideration of final payment.
- SALE OF PROPERTY
- No permission is required to sell a property held by NRIs in India.
- REPATRIATION OF SALE PROCEEDS
- Repatriation of proceeds from the sale of residential property purchased on or after 26th May 1993 is allowed.
- The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of the final purchase deed or from the date of final payment.
- Application of repatriation (IPI-8) has to be done within 90 days of the sale of the property.
- INCOME FROM PROPERTY
- The rental income from property investment in India needs to be credited to the NRO account.