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