The Indian real estate market is entering a boom phase and it is many believe that this is a good time to take the plunge. There is also an increased interest in the market from the NRI segment. According to a recent survey, more than 50 per cent of non-resident Indians (NRI) had expressed their desire to invest in a property in India. One of the major factors considered for this could be the uncertainties and dwindling job opportunities in the country that they are residing in. The pandemic has shaken the job market in many countries and as a result, many NRIs are contemplating keeping a backup in India.
While NRIs had been investing in Indian real estate even before COVID-19 but their bend was more towards commercial properties. Now, there is a greater percentage of NRIs willing to invest in India and also they are open to all the options that exist in the market. Concepts such as luxury villas, serviced apartments and holiday homes are a big hit among this target group.
There are many reasons for this increased interest in Indian real estate. Some NRIs wish to own a property so they can live a peaceful post-retirement life in India and some are looking to buy one for investment purposes.
Goa has emerged as the destination of choice for many NRI. They are looking for smart second homes that can match their lifestyle. This is one of the reasons why the demand for luxury villas in North Goa has zoomed multiple folds in the last couple of years. Real estate developers in Goa are looking to make the most of this trend and offer interesting options.
Here’s a detailed guide to all misconceptions or confusion related to property buying in India concerning NRIs.
Procedure for Purchasing
The initial step involves plenty of research online, contacting developers and brokers to get all the possible information about properties. The second step is to shortlist the best options before actually coming down to check properties.
These days, the most reputed developers provide plenty of information on their websites. Besides, their teams regularly engage with clients living abroad. With COVID-19, most things have become digital and it is easy to cross-check everything right from the comfort of their home.
Is physical presence required to purchase a property?
Not at all. If you are not a frequent visitor to India and do not wish to travel only for some paperwork related to buying property, NRIs are provided with some facilities to ease their work. Things have moved online and everything can be done over a few clicks.
Another age-old method is also available for people, who still prefer the physical route. For them, there are provisions available via Power of Attorney (POA). It means a person granted this privilege can take decisions and sign documents on your behalf.
Rights granted to POA include:
1. Carrying out property transactions such as buy/sell/rent/lease
2. Manage any property disputes that arise
3. Approve or sign financial documents as needed for banks/insurance companies.
However, while opting for this route, you should pick a reliable and trustworthy POA.
Can NRIs purchase property in joint ownership?
Yes. But the person who is not eligible to invest in a property in India, resident or non-resident, cannot become a joint holder.
List of Documents:
To ensure a smooth procedure of buying a property, after arriving at a decision of investing, is that one must keep all the documents required handy.
1. Indian Passport or Overseas Citizen of India (OCI) Card – Indian passport is a mandatory document; however, if you are not an Indian citizen or Indian passport holder but is eligible to become one, you need to have an Overseas Citizen of India (OCI) card. Moreover, if you hold a passport of some other country, you need to have a Person of Indian Origin (PIO) card.
2. PAN Card – A Permanent Account Number (PAN) card is a necessary document for an NRI buying property in India. PAN Card is required as you will be expected to file income tax returns for your investment in India. You can easily get a PAN card in India by applying online. There are regular taxes that are applicable at the time of purchase and ownership of property.
3. POA Certificate – A lawyer will help you prepare a Power of Attorney (POA) Certificate which has to be signed by your power of attorney and the witnesses.
Picking the Right Project
It is important for an NRI to pick the right project that suits their need. If they are looking for a house only for an investment purpose, then they can opt for a holiday home. These can be rented when not in use. Axis Ecorp, which is one of the most reputed real estate developers in Goa is also offering many interesting options for NRIs to choose from. Their flagship project Axis Yog Villas and the recently launch Axis Lake City has been gaining a lot of traction.
Proximity to major infrastructure projects such as the MOPA airport makes these projects a great bet for any individual.