Real Estate in India vis-à-vis NRIs

Investments in India can be done in a number of sectors.The first among them is the real estate sector that has emerged as the hot spot for cogent investors. This is perhaps because this sector is fast growing and non-residents have the option of buying, selling or even renting out their property. Indian Real Estate has made its position very strong in stock markets since last few years. As per growing standards, India has become the fifth largest economy in the world. There are many factors responsible for this tremendous growth & NRI Real Estate Investment is one of them. Due to India’s consistent growing economy, investors are obtaining benefits in the market of real estate.

Role of Government to encourage Investment
Indian government has also played a significant role in growing investments by liberalizing the investment policies. India is the second largest among the coming up nations which has shown potential growth in investments destination for the NRI population. Government has provided special NRI real Estate Quota for various land sales. Special Grants & services are also provided to NRI population in order to attract more & more foreign investments. Indian government’s recent declaration of reforms/relaxations for such stream of investors influences the NRI real estate investment.
Role of real estate companies & Builders in attracting NRI investments
Decision of buying & selling properties in India is a crucial decision. Real estate companies play major role in solving such problems & also contributing in growing the trend of foreign investments by NRIs. These companies provide proper consultation services for buying or selling properties whether it is commercial or residential property. The competition in the real estate sector is at its peak. Following cut throat competition between the companies, the consumer is the main beneficiary as they have got the best features and services at his disposal.
Real estate companies in India have witnessed growth in business in the last few years. Builders also provide assistance to look out the best properties. With growing demands builders are one step ahead and they also involve into business of development. Builders choose land, purchase that land and develop Luxurious villas, residential bungalows and commercial complexes. These residential and commercial properties in India developed by real estate builders provide all kind of facilities which one would have never thought of.
Role of Banks & financial Institutions in increasing investments
Services related to NRI investments are taken separately by leading banks and financial institutions in India. These banks provide most efficient housing loans and other home loan related products. Easy home loan availability by financial institutions in India, NRI remittances & repatriation procedures and easy operability of NRE (Non resident external account), NRO (Non resident ordinary account) & NRCS bank accounts has materialized as the best of all the available prospects for the NRI's looking forward to returning to India.
As per the existing foreign direct investment (“FDI”) policy NRIs and PIOs are allowed to invest directly up to 100% in any Indian company in the housing and real estate sector without any approval. The profits and capital are fully repatriable subject to withholding tax.
NRI investment necessary to shape up India’s future
Less restriction on foreign investments always helps investor sentiment. It is important that investment should not be seen or received as charity. Investment can build a momentum where other investors perhaps even without an emotional connection to an opportunity can see the possibility of a return and join the support for the project. Relationships built on mutual advantage will be stronger that those built on altruism. This is the key to NRI investment shaping India's future.