As a result of the real estate
sector suffering a few setbacks in the past few years, the government and the
RBI have taken certain initiatives and policy interventions. This has helped
attract the attention of investors and buyers and has allowed the sector to
slowly gain speed. Cities such as Mumbai are seeing a favourable improvement in
the sector.
One of the steps taken by the RBI
to incentivize the NRI community to invest in the real estate sector in India
was to ease up the regulations binding them. According to Asif Balwa of DB Realty, since the NRIs are a very important
source of funds that allows the sector to thrive, this may bring certain
positive effects. The new set of norms enables them to make an investment
through the automatic route which has simplified the automatic process. It is
not necessary for NRI investors to get the approval of the RBI, which means
that investors do not need to approach the Foreign Investment Paper Board in
order to obtain the approval of investing in the country.
A person of Indian origin,
presently residing outside India does not need to seek permission in order to
buy an immovable property, the only exceptions being agricultural land,
plantation property and farm houses in the country. The NRIs can carry out transactions
regarding properties in different ways. Funds are received through normal
banking channels within the country, otherwise through inward remittance from
an overseas location. The fund may be held in the account of a non-resident,
which is maintained in line with the regulations charted by the RBI. No payment
can be made through foreign currency notes or traveler’s cheque. As far as
agricultural land is not concerned, the NRI does not have to seek the RBI for
approval.
This brings certain ease in the
investment process and may boost the investments made in the sector. This
crucial initiative came up at a time when other policies such as GST and RERA
are already impacting the sector. Since investing in real estate is one of the
profitable and lucrative investments, apart from shares and fixed deposits,
this may give a much-needed push to the NRI community to shift their finances
to the sector. This is also because the real estate market is not as volatile
as the share or stock market, and brings security and stability.
There was thus plenty of reason
to invest in property in the first place, such as the emotional bond created
with a property that cannot be replicated by investment in a stock or share.
This has now deepened due to the efficiency of the process.
To find out more important news
regarding the trends in the real estate industry, and to stay updated with the
latest information about the sector, you can look for specific projects like DB Realty Andheri West.
