With the government relaxing the regulatory norms and the Reserve Bank of India (RBI) pushing the interest rates have certainly brought a merry time for Non Resident Indians (NRIs) who want to invest in properties in India.  

Also, the current growth in Indian real estate has attracted large interests from foreign players who have nurtured high hopes from the market and expect healthy returns. This has certainly given a booster dose to foreign direct investments (FDI) in India, which has climbed to a record breaking $11.2bn in 2006, thereby witnessing a 155% year-on-year increase.

If the existing rules for NRI investments in India remain same in the future, the value of the Indian real estate is certain to grow up to $50bn by 2010. Although, certain directives are still in place regarding minimum land areas to be developed and minimum funds requirements, but the overall impact has resulted into a large inflow of FDI in India. Around $7 billion is likely to be invested into real estate projects in the next couple of years, much of that is believed to come from overseas.

The real estate boom in India has come as no surprise, what with a populace of 1.2 billion growing annually by 1.4%, a cost effective and educated manpower and economic growth of 8% per annum. The real estate in India is further bolstered by the growing IT base which is not only fuelling the demand for residential segment but for the commercial segment as well.

The Indian government now has understood the demanding requirements of NRIs (Non Resident Indians) overseas and people of Indian origin (PIOs) to own pieces of property back home in India. Moreover, the booming economy is inviting a lot of people to think about to return to India.

The rules have been simplified to a great extent thereby making it simpler for the NRIs to buy property in India. This has also paved the way for more FDI in India, which is undoubtedly the most crucial for the country’s growth.  The new act FEMA (the Foreign Exchange Management Act), which is much different from the act FERA, has surely drawn a line of differentiation between acquisition of property and sale of property.

The entire scenario has transformed providing the required Indian market connectivity to NRIs which speaks of excellent time for NRIs to invest in India properties.

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