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Real estate India sector becoming one of the biggest growing and earning sector, as many others big companies and developers launching their ideas soon in India due to its opportunities. Property or real state India sector contains a better money growth than other sectors, and on other hand, risk factor is minimum here. Developer and agent are offering number of schemes to customers and real estate India is changing their aspect. Renting is also a new category of them. Estate agent offering rent facility to customers and NRI investors as well as Indian investors are showing interest in this category. Due to this category all investors could get a good amount. 

 Since real estate India is becoming a heaven for safe investments, FDI has increased by 100% within two years comprising major share in real estate India and infrastructure. Moreover, the country is trying to successfully host the common wealth games in 2010 and cricket world cup tournament in 2011.

Real Estate India is one of the main theme of diversification for national and multinational investors with particular emphasis of buying residential & industrial properties in Delhi & N.C.R. India has become a new market for foreigner investors due to its economical growth rate. Real estate India sectors, tourism sectors, hotel industries, medical sectors, telecom sectors, IT sectors and also small industries are showing sustain growth. In the present scenario, retail segment is emerging as the most prominent and organized sector in real estate India. The retail industry is likely to grow from us $ 226 bn in 2006 to 45 $350 bn in 2010. This is due to increase in retail spending of middle class to 45 $ 300 m which for ms 20% to 25% of total population of India who are also searching new and lucrative markets in Tier 2nd and Tier-3rd cities as per population norms. Statistics indicate that there is more than 440% growth in the number of malls from 2004 to 2006, number of currently operational malls is 120 and 50 million sq.ft. of quality space is under development and will create 2.5 million additional jobs directly during next 5 years. Real estate India is opening new prospects for all whether they are business person, employees or civilians.

Real estate India- Interest rates on housing loans have been rising for over a year and its effecting always to real estate India market.  Now they are slowly inching towards early 2002 levels. The interest rate on housing loans move more less in tandem with the policy rates announced by the central bank. Borrowing rates on home loan started falling initially since 2002, when the central bank started signaling lower rates.  In the last two-and –a-half years, with the level of inflation rising and the growing concern over asset price bubble, the central bank has been signaling higher rates.  Accordingly, the interest rates on home loans have also moved up.  Given the trend in inflation, the rates could still rise further.                                                                          In 2006 home loans was approx 9.50% and according to source it is going to be approx 14% at the end of 2007. The rate of home loans is increasing due to investor showing big interest in real estate India sector. It is clear indication towards the future growth of real estate India market.  Courtesy:-ET dtd-11-04-07 

During the past few years, by virtue of economic growth, congenial environment/opportunity for buying property in real estate India sector clubbed with Common Wealth Games at the helm of rudder. India property sector has become one of the hottest destinations amongst more than 30 emerging property markets of World with regard to buying and selling property in real estate India market.Since the property sector has been adjudged the most lucrative field in India, that is why not only more than dozens of manufactures, producers, consultancy and finance companies of India have jumped into the field of real estate India, but also plenty of reputed foreign companies have joined there hand either in joint venture or independently buying and developing various types of properties in real estate India market.

Commonwealth Horizon is drawing nearer day by day, since hosting of Commonwealth Game. All sector of are preparing for it whether it is big sector like real estate India , Tourism and other or the small sector. The Govt. is considering creation of land banks and allotment of land on long – term lease. Change in land use is also being examined in some cases.  Hotels will be built at railway stations, bus depots and near airports and therefore the needs of professionals in real estate India field. The one of the most increasing demand of professional in real estate India sector are developing and construction. Government is speeding up the process of setting up over 100 hotels, ranging from three to five star, likely to be constructed in Ghaziabad, Gurgaon, Faridabad, Noida, Sonepat, Kundli, Manesar and Jaipur, Besides hotels and these are hottest location also for real estate India  fields. Delhi Metro rail link to the IGI airport may be built before Commonwealth Games, coupled with completion of first phase of the Delhi airport modernization by 2009 so that the same could be used during games period.

While all elements relating to development of infrastructure play a pivotal role, there is greater need to focus on road and railways.

Courtesy E.T.      

Are you seeing lot of overseas Indians now more and more interested in buying properties here and is it getting easier for them?
Yes, the Indian government now has recognized the demands of the NRI and people of Indian origin to own piece of property and over a period of time what we have seen is that the investment is both for them to come back and some form of speculation because India as a market now is giving good returns and the economy is booming so a lot of people are looking to come back. The rules have been much simplified and it has become much easier to buy property for the NRIs. The new act FEMA (the Foreign Exchange Management Act) that is a vast difference from the regulation act (FERA) has made a tremendous difference in acquisition of property and sale of property and even repatriation of money if one has got property and he is selling it of. Overall things have improved for NRIs and it is a great time to be here Could you just run us through check list- what are the keys 2-3 things that you would advice a person once he/she has decided they want a real estate India?
It is essential if they have decided on a property they must know about the property- who is the seller, whom they are dealing with. It is a kind of due-diligence process that one must undertake before they acquire the property. A due diligence process would help them to understand what the problem areas could be or what the grey areas could be and they must also acquire the property through proper NRI or NRE account and this can be done in conjunction with the attorney or dependable real estate India agent. Do you suggest that all of them should actually hire property lawyers and go through property lawyers?
It would be very advisable because if they are sitting abroad they will not understand the actual ground rules that are prevalent in real estate India, so if they have somebody who they can hire and can get the best advice. I think that would be the best way to go. Are there any RBI approvals needed to buy property in India? Or any taxes to be paid? Will he need a PAN number in India? Or does he have to file any paper work to treasury department back in the US?
A person would be happy to know that he doesn't require any approvals. The government of India has granted general permission for an NRI to buy property in India and he has to pay no taxes even while acquiring real estate India but however certain taxes have to be paid if he is selling this property. He would require a PAN card if he has rented out this property and he wants to repatriate that money but if it is going to be a sale of property depending on time or the duration of time he has held the property, the sale proceeds would be subject to capital gains tax and as of now if he has held the property for less than 3 years then he would be paying roughly about 30% tax and if the property has been held for more than 3 years then 20% as capital gains tax and that is what he will have to pay. Any limit on how many properties you can buy?
There are limits as of now to residential properties. If he has bought 2 properties then he cannot repatriate for more than 2 residential properties if they have been bought from an NRE account and if the funds have been paid from of a rupee account then the limitation is that he has to hold the money in the account or in India for 10 years. So the restriction is 2 residential properties. Courtesy - N. T. OR H.T.

What if an overseas Indian, he has bought property gone back and wants to rent it out - would he be at any kind of a disadvantage or the rent you know the tenancy laws pretty much remain the same?
If you rent it out again, no permissions required, he can rent it out, it's a commercial decision. If he feels that he is getting the right price or the right rent, he can rent it out but again check the antecedents of the tenant preferably try to a company lease so that get all your documents right, get it good lease agreement done and have it registered and again use an attorney who can help you out in case of a problem. I was looking at real estate India as a product for investments but then problem when it came to dealing in financial transactions. I notice that most builders I dealt with wanted my money in two parts, one was what they call as white money by cheque and second was a black money which was in form of cash which must have been okay for most people locally but for somebody coming from abroad where all his money is accounted for it poses as a problem. So paying the black component was kind of an unfair advantage because I am converting my white money to black. So my question is whether there is any work around in this kind of situation?
Black money component, yes, it is there. We cannot hide that fact that there is a black component in the properties that are going on but again things are changing especially If one is dealing with a big builder a reputed builder, I don't think that they would encourage splitting off the payment. In fact the big builders especially in the big metros they would look at the client and tell him up front that every payment has to be done through cheques. In fact there are builders who are not only accepting the purchase prize but also the maintenance charges just through the cheque medium and black money has been completely ruled out vis-à-vis with the big builders. The smaller builders in the smaller town and again the other issue were that the stamp duties which were payable, which were also attracted and made the black component, part in an agreement. This has with the bringing down of the stamp duty charges or the stamp duty rates; I think this incidence of black money is diminishing definitely. So I would advise that a person should deal with big builders in real estate India. I hold a green card and am keen to buy real estate India, Delhi. I want to know whether there are any taxes that one has to pay on buying the property and also are these taxes paid via the builder or would she have to pay them directly, please explain the tax structure?
If a green card holder wants to purchase any real estate India, he does not have to pay any taxes. Taxes are only payable at the time of repatriation of the money and as said earlier it will be subject to a capital gain tax. But at the time of acquiring a property in India there is no payment of tax and if there are any conversion rates, the builder may have paid the same and included into the same price, nothing additional at all. Courtesy - N. T. OR H.T.

I am a UK based lawyer and want to know if I would have to pay taxes if I own a real estate India. Also can I avoid taxes on rental income on my real estate India if I am already paying taxes in respect of the same income in the UK?
Yes, he would have to pay taxes on his rental income. He has to pay tax that's a something to remit the money back; he has to pay the taxes at the prevalent rates. But India is a signatory with a lot of countries I have seen over 60 countries where you have the double taxation avoidance agreement and under those he can take advantage and pay the taxes here in India since the property situated here but he can take advantage or equivalent tax rebate in the UK. I am from USA and my husband and I am planning to move back from US by end of this year. I want to know whether returning Indians can retain their property overseas even after they moved back to India.
Yes, you can. You can retain properties that you acquired while you were a non resident, while you were staying there you can acquire those properties and if you wish to retain those properties you can maintain and retain those within the jurisdiction there is no problem or restriction from the government's point of view. I wanted to sell real estate India, Chennai. I just want to know how I can repatriate these funds from the sales deal and what formalities are there that need to be fulfilled?
Now depending upon how he acquired the property the repatriation process has to be understood in that context if of the property has been acquired from NRE account then the restriction is that he can only repatriate money for two residential properties. But if he acquires a property from a NRO, which is a rupee account, then the restriction is more with the timeframe. Then he cannot repatriate that money for ten years. So that is the only restriction if he is acquires from the rupee account and on the payment of taxes he can take his money back. But even if you had NRE account, is there a limit that you can repatriate only so much    in         a          year?
Yes, you can only repatriate the amount that you have spent on acquiring in real estate India. That is the other limitation that you have through the NRE accounts but hopefully we are looking at government liberalizing their policies further. I recently inherited some family property in Punjab. The siblings have now decided to sell it. Again I want to know how I can repatriate the funds from the sale's proceeds, any special regulations when it comes to inherited property.
Yes, the government allows you to repatriate in a calendar year USD 1 million. So if you have inherited property worth a million dollars, without a problem he can repatriate that money. So in that respect there shouldn't be any problem. Lot of NRI's are buying property, for their parents or relatives. How does that works, can you gift a sort of property in any amount?
Yes, you can gift properties; you can bequeath properties to your relatives here to your parents, you can gift those houses. Not an issue.  Courtesy - N. T. OR H.T.

 Buying a new home often becomes a cause of sleepless nights.  But it can be avoided.  ET Realty shows you how to make it easier. 

Buying a real estate India is not only an important personal decision, but also a big financial investment.  It is important to find a home that is right for you.  It is equally important to find a builder, who provides the best overall value and service.  Following are a few tips you can keep in mind to make the buying process enjoyable and successful.

 v     Research well 

Know what you want, what is available and how the buying process works, collect all information about real estate India market, before you start thinking seriously about signing a contract.  Keep in mind the location and consider its distance from the local market and schools etc.  Check availability of transport even late at night and check the security available.  See if traveling at late hours is not a hindrance Consult with family, friends and coworkers.  Most importantly, visit model homes and talk with builders and sales-people and even the residents of that area, if need be.

 v     Pre-arrange your mortgage 

If you plant to borrow funds or take a loan to buy real estate India, talk to your lender about mortgages early in the process.  Knowing in advance how much you can spend comfortably and getting pre-approval for a means you can proceed from ‘just looking’ to a signed contract with various banks and think not twice, but at least for a fortnight carefully, before signing the loan agreement.

 v     Check the builder’s qualifications/ credentials.  

There are many reputable, professional builders in the industry, who provide great home and great service.  As you talk with builders or their sales people, ask a few questions: How long the company has in business?  Does it have any other building in the same location constructed by him?  Go and Check out some other constructions by the same builder.  Is there any kind of fault in the construction?

 v     Society. 

Check if the society is formed and well functioning.  What are the facilities available in the building?  And check for water and electricity supply.

 v     Personal needs. 

It is necessary that the builder (or sates person) understand your needs?  If you are used to a certain lifestyle, see if pets are allowed in the society.

v     Check the home carefully. 

Whether a builder has a model home, a sales office or sells directly from drawings and plans, real estate India market has plenty of opportunities to look closely at the quality of the builder’s home and what’s included.  The builder’s list will detail the construction materials and finishing products.  When viewing a model home, don’t hesitate to try out windows open drawer, and look into every nook and cranny-the builder wants you to be convinced of the home’s quality and solidity. 

 v     Legal aspects. 

Get detailed price and estimates on everything involved in buying a home-Your builder and lender can advise you on the costs of securing a mortgage, taxes and so on Ask your lawyer to give you a detailed breakdown of closing costs.

                                                                              Courtesy : ET dtd.30-03-07.