Time NRIs cashed in on incentives for property
An additional Rs100 billion would be contributed by investors like LIC, Development Finance Institution (DFI) and Sovereign Wealth Funds.
Other significant measures include relaxation of guidelines for buying affordable housing by foreign buyers and lowering of interest rate on housing building advances.
Around 1.74 million homes stuck in various stages across India (as per Anarock research) will benefit from this.
Advantage
options will become available over the short-to-medium term.
As per Anarock data, more than 55 per cent of property purchases by NRIs in this financial year have been in the affordable (sub Rs5 million) and mid-income (between Rs50 million to Rs100 million) categories — in short, a hefty percentage of NRI homebuyers have reason to cheer.
In general, NRI property buyers and investors have had lots of reason to feel upbeat in the last few months with the government’s various steps to improve the overall investment scenario in India. Some of the initiatives directly impact NRIs — such as the merging of NRI portfolio Investment Scheme Route with the Foreign Portfolio Investment Route, and the fact that foreign portfolio investors can now invest in listed debt securities issued by Infrastructure Investment Trusts and Real Estate Investment Trusts.
Other measures like pumping additional liquidity into the housing sector, along with taxation benefits and, more recently, setting up the last mile fund will improve the overall investment viability of real estate.
■ Shajai Jacob is CEO — GCC at Anarock Property Consultants.