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December 2008 - January 2009

Business Forum

NRI Property Investment In India

by Paul Riat

With economies all over the world including India going through a depression, NRI's are looking at property investments in India. Not surprisingly, the NRI's are investing in various sectors incluing real estate. Several real estate projects across India have garnered approximately 10% - 20% participation from NRI's.

The return on investment provided by real estate in India has been found to be more attractive than that offered by developed nations along with the simplified process of investments.

The NRI's are the most affluent lot amongst the real estate buyers in India, showing interest in buying large chunks of land in their home country.

They are not affected by the current slowdown, as they have a long - range view of the whole scenario.

We have faith in the domestic economy and firmly believe that the prices will appreciate by atleast 10 to 15 percent every year.

According to a recent survey, the interest from NRI's has inceased by almost 20 - 25 percent every quater, that is almost two to two and a half times in the last two to three years and this is not only from the USA or the UK but also from the Gulf countries.

Many NRI's in the US and UK are not as confident as before of sancity of their employment, while others are disturbed by negative economic patterns across developed countries. They see greater potential for India overcoming the current economic setbacks. Sentimental attachment to their country of origin is another reason.

Investors from USA and UK are pure investors and have an affinity to the areas they come from. Bangalore , Pune, Mumbai, Baroda, Chandigarh, Gurgaon, Kolkata and Goa seem to draw the highest number of serious enquiries.

So do second home destinations and extended subhurbs.

As opposed to earlier times when an NRI had to struggle with various rules, income tax and other issues, these days the NRI is being welcomed with open arms.

Today the NRI's enjoy high returns easy repatriation with no tax on sale proceeds and easy loans, and there are several realtors, financers, and other organisations specialising in easy financing and mortgages for NRI's and high net worth individuals.

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