The number of NRIs who are planning to invest in real estate in India will increase in 2018 according to experts. This is being attributed to several policy and regulatory improvements including the introduction of RERA. The Real Estate (Regulation and Development) Act of 2016 has been implemented and will boost sentiments of NRIs with regard to putting money in the realty sector in the country as per experts.
The real estate sector is now more transparent and investment-friendly. The number of NRIs investing in real estate will only go up. The real estate sector has witnessed several changes including RERA and demonetization along with the Benami Property Act and GST (Goods and Services Tax). RERA, according to experts, will ensure that projects get delivered in a timely manner and now since most information will be readily available online, it will lead to a major boost in confidence for NRIs who are planning investments in Indian real estate. However, GST may negatively impact realty buyers since property prices may go up manifold.
Currently, prospective buyers will have to shell out GST of around 12% to real estate developers if they wish to buy an under-construction property. There is not GST for properties which are ready to move into or fully constructed. GST has benefited the entire sector in some ways according to several experts. It has ushered in more transparency with regard to valuations of deals and this also offers builder incentives for declaring the actual valuations. This will help in pricing structures becoming more transparent and highly efficient and developers will also benefit from getting input credits which they never got while paying service tax previously.
NRIs should always get more information about the project, builders, track record of developer and the status of the various regulatory approvals for a particular project. RERA will help in accessing all this information online. NRIs should always verify all these aspects including the land status and usage of land. NRIs are showing more interest in snapping up residential properties both from an investment perspective and also from a sentimental aspect, i.e. ownership of homes for themselves in their country.
Residential property prices are also on a lower curve at present and realty players are now offering several freebies and incentives for buyers. This makes it a good time to invest and although property appreciation is a little muted, it is strong in several locations. NRIs should familiarize themselves with RERA. They can even look for workshops that are being organized by leading real estate developers in the country.
