| When one considers the vast size and | | | | hold, transfer or dispose of by sale, |
| scale of India, it is perhaps a little | | | | mortgage, lease, gift, settlement or |
| surprising that it has not yet fully | | | | otherwise any immovable property |
| emerged as an economic powerhouse; as | | | | situated in India.' In practical terms, |
| well as attracting more interest from | | | | this means that unless a buyer is |
| overseas property investors. India is | | | | resident in India, they must have the |
| one of the BRIC countries, along with | | | | permission of the Reserve Bank of |
| Brazil, Russia and China, the four | | | | India (RBI). |
| economies that are predicted to | | | | The rights to buy property in India |
| provide the most substantial economic | | | | are reserved for certain groups that |
| growth in the world in the next few | | | | qualify, but for a foreign national |
| years. Add to this the fact that India | | | | is it illegal to own property unless |
| is home to the largest company in the | | | | they satisfy the residency requirement |
| world (by numbers of people employed); | | | | of 183 days in a financial year. |
| has carved itself a niche in the IT | | | | Tourist visas last for 180 days, so it |
| services sector; and has the people and | | | | is also impossible to buy a property |
| resources to continue growing, and it | | | | on a tourist visa. |
| makes an attractive investment | | | | Buyers who are able to find their way |
| proposition. | | | | through the buying regulations have the |
| Part of the reason that India has not | | | | option to buy along the 7,000km of |
| made more of an impact on the | | | | coastline that has made India so popular |
| international property scene is the | | | | with travellers since the 1960s, or |
| fact that property ownership laws are | | | | to make an investment in one of the |
| far more restrictive than in most | | | | fast-growing cities that service the |
| other countries. Whereas elsewhere it is | | | | IT sector. While it can be argued that |
| often enough to set up a bank account | | | | the major growth in New Delhi has |
| and tax status in order to buy a | | | | already taken place, the 'second-tier' |
| property, in India you must be either | | | | cities of Bangalore, Chennai, Jaipur, |
| a Non-Resident Indian (NRI) or a Person | | | | Hyderabad and Mumbai are seeing huge |
| of Indian Origin (PIO) in order to | | | | growth. By 2015 it is predicted that |
| buy. | | | | a further 2.9 million Indians will be |
| The FERA (Foreign Exchange Regulations | | | | employed in the IT services sector, |
| Act), 1973 states that those 'who are | | | | the majority of whom should be earning a |
| not citizens of India (whether resident | | | | wage well above the average for the |
| in India or not) and companies (other | | | | country. All of these newly-rich workers |
| than banking companies) which are not | | | | will need places to live in the |
| incorporated under any law in force in | | | | cities, and this is fuelling the |
| India are required to obtain prior | | | | building boom in regional cities across |
| permission of Reserve Bank to acquire, | | | | India. |