NRI Property Investment

Are you a Non Resident Indian (NRI) who wishes to invest in a property in India? If yes, you are at the right place. This section of our website is devoted to NRIs who wish to invest in Indian property market. This is where you can find answers to all your queries related to property investments in India. This is where we make efforts to redefine luxury and rediscover comfort that will fit in with your current lifestyle. We understand the requirements and preferences of our NRI clients. For the past 30 years, our aim is to provide quality lifestyle and better living prospects to all our customers. Time and again, we have introduced realty projects in the market based on well-thought out architectural plans, impressive designs and stylish interiors. We have successfully accomplished these projects and delivered on each one of our promises within time. You’d be glad to know that at DGS, we have a dedicated team to serve our NRI clients. We are happy to serve them across platforms online or in person. We have a slew of specially-crafted deals that would meet their expectations, both in terms of quality as well as fulfilling the regulatory requirements.

At DGS, we take a judicious approach to NRI dealings and once a transaction has happened, continue to provide all possible support offerings to make sure that the deal goes through without hassles and they end up having a positive property buying experience.

We understand you cannot be in India at the drop of a hat. We therefore make sure that you are able to remote-handle all the formalities from project selection to loan approval and deal signing. Call us and spell out your requirements, we will take care of everything from end-to-end.

INVESTMENT OPPORTUNITIES FOR NRIS IN INDIA

Thanks to the changed, friendlier policies of the Indian government, investment into Indian property market has been extremely simplified for the diaspora community. The relaxed conditions have made it very attractive for the NRI investors, as well as PIOs (Persons of Indian Origin) to invest in India.

Although NRIs and PIOs still cannot invest in agricultural lands, farm houses or plantations, they can easily acquire residential or immovable properties, sell it, transfer or rent it out, subsequently. The 100 percent repatriation rule allows them to even take the capital gains or rental income outside India, provided they comply with all the foreign exchange regulations that our expert property consultants will demystify for you.

Furthermore, NRIs and PIOs can also avail home loans on easy terms for buying immovable property, anywhere in India. For this purpose, they can also dip into the funds they may have remitted through their Indian (NRE, NRO or FCNR) bank accounts from overseas. Additionally, the sale proceeds from selling any two of their Indian properties can be remitted outside India without the requirement of seeking the approval of the Reserve Bank of India (RBI). That is the cap set, any transaction above this limit would require RBI’s nod.

BENEFITS OF INVESTING IN INDIAN PROPERTIES THROUGH DGS

‘DGS properties’ offers a slew of benefits to NRIs who wish to invest in India. Some of these include:

The availability of a strong pool of luxurious apartments at affordable pricing

Dedicated assistance from our relationship manger.

Proactive guidance on how to maximize your returns from a battery of our in-house financial market experts and property consultants.

No charges for ownership-transfer during resale.

Sharing of all legal documents as well as Auto CAD drawings at the outset, during the booking.

Utmost support at all times from our customer relation personnel.

Transportation and hospitality services for NRI clients who wish to tour our sites for personal inspection

Regular sharing of status updates on the under-construction projects

Assistance in applying for home loans on attractive terms from all leading financial institutes and banks from application to final disbursal of the sanctioned amount

Legal assistance on POA (Power of Attorney) as well as other agreement-related documents.

LEGAL INFORMATION

At DGS, we take it as our duty to resolve all your doubts and concerns. Here is a bit of legal information we have compiled to help you take informed decisions about your realty investments:

1. As a Non Resident Indian holding a valid Indian passport, if you wish to acquire any immovable property for bonafide residential purposes, you will not require RBI approval to do so.

2. The purchase consideration may be paid either from NRE/NRO/FCNR accounts or by remitting funds from abroad via normal banking channels, provided you are an NRI with a valid Indian passport.

In case you have any more queries, you can short us a mail or call us at your convenience.

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As a catalyst in building strong and sustainable architecture, DGS Group is moving at great speed in Mumbai’s realty-scape to establish an impeccable, strong reputation based on the quality of its construction activity and timely deliveries.

Who is a Non Resident Indian?

Any Indian citizen who decides to stay abroad for any purpose such as vacation, business or employment, for an uncertain duration, is referred to as a Non-Resident Indian. This includes individuals who are posted in U.N organizations as well as officials who are deputed abroad on temporary or non-temporary assignments, by State/Central Governments or Public Sector undertakings. Non-resident foreign citizens of Indian origin are also treated as NRIs.

Who is a Persons of Indian Origin (PIOs)?

An Individual becomes a person of Indian origin if:

He/she happened to hold an Indian Passport at any point of time or

His/her paternal grandfather or father happened to be an Indian citizen as per the Indian constitution or the Citizenship Act of 1955

Are there any exceptions made for NRI investments in India?

As per the government rules, NRIs can:

Maintain bank accounts in India

Invest in shares/securities

Deposit money in Indian organizations

Purchase and acquire immovable properties in India

What kind of immovable properties can NRIs and PIOs purchase in India

The Indian government gives permission to NRIs and PIOs to buy residential as well as commercial property in India. However, they cannot acquire farm houses, plantations or agricultural lands in India.

What are the conditions that need to be met with if an NRI wants to acquire commercial property in India?

As per the general permission that is granted by the RBI, NRIs can acquire commercial property in India provided:

They pay up the purchase consideration out of funds that they have maintained in Indian banks via NRE/NRO/FCNR accounts or through inward remittances in foreign exchange via normal banking channels

They submit a declaration to the Central Office of RBI in form IPI 7 within three months from the date of purchasing the property or from the date of making the final payment of the purchase consideration. Would an NRI require RBI approval to later, if need be, sell his property in India? Yes, he would. Can an NRI remit the sale proceeds of his Indian property outside India?

In case the residential property has been purchased on or after 26th May, 1993 using foreign exchange, RBI will allow repatriation of sale proceeds to that extent. This holds good for two properties that may have been acquired through foreign exchange. The balance amount will need to be credited to the NRO (Non-resident ordinary) bank account of the NRI.

In case of properties that may be purchased before 26th May, 1993, the entire sale proceeds will go to the NRO account of the Non Resident Indian.

Can NRI’S receive or give away Indian residential properties as gifts?

Yes, RBI permits NRIs to acquire or dispose of their Indian properties as gifts to their relatives, provided they are Indian citizens or persons of Indian origin.

Can NRI’S receive or give away Indian residential properties as gifts?

Yes, RBI permits NRIs to acquire or dispose of their Indian properties as gifts to their relatives, provided they are Indian citizens or persons of Indian origin.

Can NRIs avail home loans from Indian financial institutions for acquiring houses or flats in India for residential purposes?

Certain financial institutions like HDFC, LIC Housing Finance Ltd and a few other authorized dealers have been permitted by RBI to offer home loans to NRIs who wish to acquire homes in India for self-occupation. Nevertheless, the condition is that they will have to pay back the loan within a period of 15 years either from the funds that they hold in their NRE/NRO/FCNR accounts or by way of inward remittances via normal banking channels.

The criteria regarding the down payment, the purpose of the loan and the amount of loan is the same as that of resident Indians.

Can NRIs get home loans from Indian companies they work for?

Indian companies that have deputed their employees abroad can grant them housing loans as per the RBI, provided they are still holding valid Indian passports. Nevertheless, there may be certain conditions they may have to adhere to.

Would an NRI need a guarantor if he wishes to apply for an LIC or an HDFC home loan?

Yes, a guarantor is required for a home loan especially for collateral security. Such a guarantor should have enough net worth to cover the loan in case the borrower defaults. The guarantor could be in any city where there is a branch of the loan issuer. Alternatively, the loan issuer may also work out something for the NRI.

What are the criteria for NRIs to avail home loans in India?

As per the guidelines of the RBI for NRIs,

The loan amount should not exceed 85% of the value of the home that the NRI is going to purchase.

The down payment for the home should be a direct remittance from abroad, either through normal banking channels or through NRE/NRO/NRSR (Non-Resident Special Rupee account) in India.

The proceeds for the repayment of such a loan, including principal amount, interest and other charges, should come from abroad as a direct remittance through normal banking channels or through the NRI’s NRE/NRO/NRSR account in India.

What are the documents that are to be filed by an NRI in order to purchase a residential or an immovable property in India?

As per the general permission of RBI, NRIs are required to file:

A declaration in form IPI 7 with the Central Office of RBI, Mumbai, within three months from the date of making the final payment of the purchase consideration / date of purchase of the property.

A certified copy of the document that will evidence the transaction

A bank certificate showing the payment of the consideration.

Can an NRI rent out his residential or commercial property in India, if he is not using it?

Yes, he can. However, the income from such rental property should be deposited into the NRI’s Non-Resident Ordinary Account.

What is the criterion for the application of repatriation of sale proceeds to be accepted?

The sale needs to take place at least three years after the property has been purchased or the final payment of the purchase consideration has been made, whichever is later.

How should an NRI seek such repatriation?

An application for repatriation of sale proceeds should be submitted in form IPI 8 to the Central Office of RBI, Mumbai, within three months from the date of sale of such property.

Can an NRI’s loan formalities be completed by an Indian citizen via Power of Attorney?

Yes. The NRI can nominate a person to complete loan formalities on his behalf via a Power of Attorney. Such a person can also take possession of property, sign the rental agreements and sell the property depending on the terms mentioned in the Power of Attorney.

What if an NRI does not want to grant a Power of Attorney to the real estate developer while purchasing a property?

The NRI may choose whether he wants to grant POA to the real estate developer or not. If he doesn’t wish to grant the POA, all the documents will have to be mailed to the foreign residence of the NRI, which might include some time delays.