A few months ago, we blogged about the need for streamlined and flexible policies (ref: “NRI investment in real estate: Flexible policies are the need of the hour”). It turns out that things are moving in the right direction. There is a lot happening on the legislative front.
The question now is whether NRIs can be more confident in making an investment decision with policy changes such as RERA and GST attract NRIs to Indian realty in 2017.
The government has largely addressed most of the above concerns by some of the key policy changes introduced in 2016, namely the Real Estate Regulation Act (RERA), the Goods and Services Tax (GST) and the Benami Transaction Act.
RERA or the Real Estate Regulation and Development Act 2016 (RERA) will ensure regulations in this largely unregulated market. The purchaser will be more protected and greater transparency in the sector will be visible. RERA will put accountability on the developers in terms of financial disclosure, timely development of projects and maintaining good corporate governance practices.
The Punjab state government has taken a lead by proposing to set up an ombudsman solely for NRIs. An Article in Times of India says
“A lot of NRIs face problems either related to their property or other matters. They come to the state only for a short period every year and cannot afford spending long time dealing with legal problems. With the objective to redress their grievances effectively in a time-bound manner, the state is bringing a new legislation to create an Ombudsman for NRI Affairs,” the budget proposal states.
To further connect with Punjabi NRIs, the state government has unveiled “Friends of Punjab-Chief Minister’s Garima Gram Yojna” for the Diaspora.
There is certainly a demand from NRIs. Khaleej times examines how “More NRIs keen to make second property investment”
More NRIs in the UAE are now interested in securing an additional investment back home – there has been a rise of 110 per cent in this segment from 20 per cent last year to 42.12 per cent now.
This was revealed in a survey conducted by the organisers of the upcoming Indian Property Show among 10,000 UAE-based Indian expats.
There is an increase of about 45 per cent in people looking to buy homes in the budget range of Rs5.1 million to Rs7.5 million (Dh290,000 to Dh426,000) from 21 per cent last year to 30.48 per cent this year.
Although Mumbai, Chennai, Bengaluru, Delhi, Hyderabad and Pune remain the top favourite cities among the Indian community here, Kannur, Thrissur and Thiruvananthapuram have emerged as new destinations of interest.
“NRIs are crucial stakeholders of the real estate industry. In 2017, total NRI investment in realty in top eight cities is expected to touch $11.5 billion [Dh42.20 billion]. This will represent 20 per cent of the total market share, currently estimated at $60 billion [Dh220 billion],” said R. Srividya, general manager of corporate sales and brand engagement, Indian Property Show, Sumansa Exhibitions.