Property Buying in India's Real Estate Market Today

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