Non-resident Indians have always been quite attracted toward the Indian property market. But, the non-transparency in business and lack of information stand to be the only concern. The year 2016 brought several key policy changes like Benami Transaction Act, demonetization, GST and Real Estate Act. Well, the Indian real estate sector is observing a gradual transformation. The managing partner with Mandarus Partners LLP, Naushad Panjwani has acknowledged that there is a strong presence of trust deficit in Indian real estate sector. This deficit takes place on account of the absence of an effective regulator like in other sectors (SEBI, TRAI, IRDAI, etc.), the nexus between builders, bureaucrats and politicians, and the scarcity of funds for the projects.
Greater Transparency Invites More NRI Investors:
Well, some changes in policy will bring greater transparency for NRI investors. Also, it will tend to curb unaccounted cash transactions. PNC Menon, the chairman-emeritus of Sobha Ltd. has agreed that NRI investors will find the investment opportunities interesting if factors like – tighter regulations, more affordability, greater transparency and enhanced price stability can be incorporated in real estate sector. According to Kaizad Hateria, the brand custodian and chief customer delight officer, Rustomjee Group, maintaining proper transparency will remove the trust deficit as well. Moreover, it encourages the NRIs to have more confidence about investing in Indian realty market.
Why 2017 is going to be the Best Year for NRI Investors?
As stated by Hiral Sheth, the director marketing with Sheth Creators, Indian realty market, being the second largest sector in India, has simplified the process of purchasing property. However, NRI investors can expect something very positive this year in case of investing in Indian realty market.
• This year, real estate sector in India is introduced as a major driver. Therefore, India is expecting to be amongst the fastest growing economies.
• Several rules and regulations have been amended in order to simplify the purchasing process.
• The major attractions for NRIs like – ready-to-move options and the availability of affordable properties in Indian property market will encourage the NRIs to invest more.
• Some policies such as – Benami Act, RERA, REIT and demonetization, and GST, are expected to boost the transparency.
• The participation of NRIs is likely to enhance for the effective implementation of Lenient FEMA policies and relaxation of laws by RBI, in case of property buying.