Real Estate - The NRI Perspective

India has witnessed a stupendous growth in the real estate sector in the recent times. The Indian real estate industry is being valued above $50 billion and is expected to grow at 25 percent annually. India has definitely become a destination of opportunities for real estate investments. With the expansion of industries and increase in employment opportunities in the cities and nearby areas the demand for commercial as well as residential properties is on the rise. Development of properties is also happening at a rapid pace to meet the requirements.

The real estate industry is one of the major contributors in the growing Indian economy. Real estate has evolved as a huge industry in past few years and as per industry sources this boom will continue for a good time to come. Indian government is also making huge revenues by selling the land to builders for various projects. On the other hand, government is also contributing by way of providing the infrastructure support and promoting the investment in the real estate sector.

There are certain policies being formulated to facilitate the real estate transactions and make the system more transparent. Allowing Foreign Direct Investment (FDI) and encouraging NRI investment in India has provided major boost to the real estate industry. The government including Reserve Bank of India (RBI) has liberalized the rules and regulations for the NRI investment in India. Both the NRIs and the people of Indian origin are being encouraged to invest in properties in India.

The NRI Real Estate investment can be allocated to both residential as well as the commercial properties in India. There is also no kind or restriction as to the maximum number of properties that can be bought. Although there are some restrictions as far as purchase of an agricultural land or farm house is concerned. NRIs can also invest by way of securities investment or stock investment in the real estate company. NRI Stock Investment are being encouraged by Indian government as well as RBI (Reserve Bank of India) as apparent in recent reforms.

NRIs also get full support for the finance required for the purchase of the properties. The NRIs are eligible for a home loan to purchase a property in India. The repayment of this home loan can be made through a normal banking channel by way of inward remittance or the debit in the NRE Account/ NRO account. It is a good sign that the NRIs trust in the real estate market of India and consider their investments to be safe and rewarding. Any kind of property investments made by NRIs generate a lot of interest in the country and further boost the market.

With a lot of investment flowing in the real estate sector from all possible sources the property market in India is getting organized. The transactions are lot more transparent and property in considered as a safe investment option for everyone.


Amitabh Kumar, a writer by profession has been part of content research team of magazines, journal dealing with NRI, non resident Indian news, stories, and issues. Presently he is content writer in NRI News based website emphasizing on NRI News, property investment scenario in India.