NRIs gain with falling Rupee

The scenario of Realty sector became a controversial topic few days back. While there are people who believe that the market could crash in 2013, there are also some who believe that this slowdown is temporary and cyclic. The slowdown in the realty sector is quite positive from the investor’s point of view. This is the time when you being an investor could bargain as per your desire. Even the sellers start quoting alluring prices and schemes to attract the buyer. Schemes like Subvention, Assured Returns and Assured lease guarantee are to name a few.



It surely is profitable to invest at this point of time, but being a buyer you must explore the market too. Among these attractive offers could be some fake players also, so it is advisable that you must take an expert’s advice.

Now from the Slowdown in Real Estate market, the topic of discussion has moved to the downfall of Indian Rupee. Indian money is in a free fall with the rates gone as down as Rs 60/$. According to the experts, there are various reasons behind this free fall. The money is not like us whose growth is natural. Its growth or fall depends upon the economic and social conditions of the country like imports and exports, inflation, employment, interest rates, growth rate, foreign exchange reserves, macroeconomic policies, foreign investment inflows, banking capital, commodity prices and more. It is a simple theory : when people have higher income, they spend more which in turn increases the demand of the commodities and thus regulates the money. This regulation is what increases the demand of the money and its value too.

The people who can avail benefit from this slowdown are NRIs. A non-resident-Indian, if investing in India at this point of time can make a lot of profit. With property rates already gone low, the down fall in the currency has acted as the cherry on the top of the cake for the NRIs, who are earning money in dollars.

Going by the words of the experts the Real Estate Market is expected to rise again by the end of September, this year. Till then it is a great opportunity for all the NRIs who were planning to invest in India. Real Estate being an asset cannot remain down for ever thus investing in it is always profitable.

If you are an NRI, then you must take advantage of the current scenario and invest in Real Estate in India.

Properties in Gurgaon

FAQs for NRI

1.      Who is an NRI?

An NRI is a citizen of India who holds an Indian passport and has been immigrated to another country over six months for work or residence etc.

2.      Who is a PIO?

A person of Indian Origin (PIO) means an individual who:

• held an Indian passport at time or,
• who/whose father/paternal grandfather was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955

3.      Who determines whether a person is resident of India or not?

Under FEMA, the status is determined by the operation of law.

4.      What types of NRI accounts are allowed to be maintained in India?

 Two types of accounts are allowed to be maintained in India:

·         Non-Resident (external) Rupee Account (NRE)

·         Non-Resident Rupee Account (NRO).

Funds in NRE account are repatriable.

5.      Can an NRI authorize a close relative to operate his NRE account?

Yes he/she can after providing a letter of authorization.

6.      What are the various facilities available to NRIs/OCBs?

NRIs/OCBs can avail following facilities:

•        Maintaining of bank accounts in India
•               Investments in securities/shares and deposits with Indian firms/companies
•        Investments in immovable properties in India

7.      Can an NRI or PIO avail housing loan in rupees from his employer in India?

Yes, subject to certain terms and conditions.

8.      Can an NRI/PIO/Foreign National sell his residential/commercial property?

TYPE OF CITIZEN	STATUS	CAN SELL TO WHOM	CONDITIONS
NRI	Yes	to NRI/PIO/Foreign National	Nil
PIO	Yes	to a resident of India/NRI/PIO	prior approval of RBI
Foreign National	Yes	to NRI/resident of India/PIO	prior approval of RBI

9.      Can a NRI gift his property?

TYPE OF CITIZEN	STATUS	CONDITIONS
NRI	Yes	Nil
PIO	Yes	Nil
Foreign National	Yes	prior approval of RBI

10.  Can an NRI/PIO/Foreign National mortgage his/her residential/commercial property in India?

Yes, the property can be mortgage keeping following conditions in mind:

·         Can be mortgage to:

(1)   an authorized dealer/the housing finance institution in India without the approval of RBI.

(2)   a bank abroad, with prior approval of RBI

·         A Foreign National of non-Indian origin can mortgage a residential/commercial property only with prior approval of RBI.

·         A Foreign company which has established a branch office or other place of business in accordance with FERA/FEMA regulations has generated permission to mortgage the property with an authorized dealer in India.

11.  Can NRI/PIO rent out the residential/commercial property purchased out of Foreign exchange/ rupee funds, if not required for immediate use?

Yes, rent received being current income may be credited to NRE/NRO account or remitted abroad.

12.  How can an NRI/PIO make payment for purchase of resident/commercial property in India?

Payment can be made by NRI/PIO out of:

(1)   Funds remitted to India through normal banking channels or

(2)   Funds held in NRE/FCNR(B)/NRO accounts maintained in India

No payment can be made either by traveler’s cheque or by Foreign currency notes or by other modes except from those mentioned above.

Property in Gurgaon