A place in motherland always carries the feel of security and sentimental support. NRIs look India as their second home, vacation home and sometimes retirement home. But in the changed scenario, they are investing in the worthwhile property market in India as both the capital value and the rental value of retail mall spaces and corporate office spaces enjoy the huge return on investment.
In order to attract them, the property developers in India have come up with advanced and innovative commercial and residential projects of international standard that can match with the ongoing lifestyle of NRIs.
Benefits of Investment in India
Investing in Indian property market by NRIs is simply rewarding because of many facts like increasing transparency, simpler tax provisions, and easier repatriation. The given facilities are also helpful to attract the NRIs:
- NRIs can hold, own, invest or transfer in foreign currency or foreign security, if such property or currency is bought, held or owned while living outside India.
- They can open, hold and maintain Resident Currency Foreign (RFC) Account with an Indian agent to transfer the balance. There are no restrictions on funds in RFC account regarding the utilization of foreign currency balance.
- When returned to India for permanent residence NRIs receive following exemptions’ from wealth tax for seven years from the date of returning:
- The money and the assets bought with them
- Value of assets bought out of the money within the year of returning.
- 15 lakhs as an additional basic exemption.
Why is an investment in India profitable?
Indian economy is developing nicely at the rate of 6 to 7% annually. And the Indian property market is offering more returns on the investment in comparison to the other developing countries. A wise investment in Indian property market can easily grow as a wealth generating tool and beneficial the investor with a handsome profit margin.
The Governmental efforts to make the process simpler are also working as a gearing tool to attract the NRIs. Undoubtedly, India is slowly becoming a hotspot destination for NRIs property investment.