As the global financial crisis continues to unravel, the real estate sector around the world continues to take a hit with credit in short supply and consumer demand in housing witnessing record lows. India too has seen real estate values decline while the government undertakes a two-pronged approach of investing in infrastructure and facilitating consumer spending in real estate through interest rate cuts and easing of liquidity norms for banks.
However, the slowdown also highlights the great investment potential especially for NRIs in realty and infrastructure. A recent report in the Times of India shed more light on the options and benefits given to NRI investors in real estate.Though government regulations prohibit investments in agricultural land, plantation properties, farmlands etc, those who have inherited them from relatives can retain them.
Their disposal however, has to be according to government regulations. For end users who are planning on eventually returning home, investments in residential property continues to be the best option. Investment in greenfield projects is also an option as it reduces the upfront payment liability and home loans are available through banks which have already branched out in countries with high NRI populations to extend these services.A number of integrated townships are already coming up thick and fast especially around the peripheries of metropolitans and tier II cities in India and provide an investment outlet for those on the lookout for lifestyle projects.
These townships are self-sufficient in nature with integrated schools, malls, office blocks etc. Since land price appreciation is much higher in peripheral and suburban areas, these are also great as pure investment opportunities. High net-worth individuals looking for a periodical rental income can look to invest in city based properties given the demand across varied groups from families to corporations. Interest rate concessions of upto 1.5 lakhs and principal repayment upto 1 lakh is also offered to those seeking investment loans in immovable property and wealth tax benefits are available subject to the residential property being leased for a minimum period of 300 days in a calendar year.