For NRIs, investing in real estate in India offers enormously rewarding prospects. The benefits of investing in India multiply if the place chosen for investment in the city of Pune. A host of reasons can be attributed to the keenness of the NRI community for investing in residential complexes and commercial & office spaces in major cities like Pune.
Apart from being one of the largest metropolitans of India, Pune also doubles as a major industrial and commercial hub. It is one of the select cities that have consistently registered an upward swing in growth in all areas. Further, as a city, Pune is famed for offering world-class and luxurious lifestyle indulgences such as:
- Exclusive residential projects and commercial establishments
- Top-notch amenities that symbolize a luxurious lifestyle
- High-end facilities such as:
- Shopping malls
- Fine dine restaurants
- Luxury hotels
- Pleasant weather conditions all year through
- A pulsating cosmopolitan culture
- Affordable property prices
Pune is also reckoned as a distinguished hub for artistic and cultural activities. This beautiful facet of the city beckons the attention of Indians living in distant lands to come and invest here.
Why Investing in Real Estate in India is a Winning Proposition
One of the advantages of buying a property in India is the relative ease with which the process can be accomplished. Laws and protocols for the purchase of property in India are overall conducive for NRIs. No complex procedures like seeking permissions from multiple bodies and formalities apply to them for buying a property in India.
A little effort to do some research and hiring a reliable estate agent can expedite the process of purchasing a property in Pune. Whether they want to buy residential property like 2 & 3 BHK flats in Pune or commercial premises, these guiding principles will facilitate the smooth procedure for investing in real estate in India, and Pune in particular:
1. Choose the Right Location
Names like Hinjewadi, Baner, Wakad, Koregaon Park, Viman Nagar, Ambegaon, Talegaon, Pimpri-Chinchwad, and others are renowned as commercially well-developed and prominent areas in Pune. Apart from world-class infrastructure and aesthetically mesmerizing interiors, they offer connectivity and proximity to important industrial areas. Commercial & office spaces in Pune feature ultra-modern development of global standards. Many of them also host the booming IT/ITES sector besides other industries, which has enhanced their capital value and rental value vastly.
2. Acquire Detailed Knowledge of Tax Benefits on Property Purchase for NRIs
Make sure you are aware of tax benefits on property purchases applicable to you, which happen to be identical to those of Indian citizens. You must also equip yourself with knowledge of different aspects such as your entitlement to benefits like tax deduction of Rs. 1 Lakh (under the Income Tax Act) as an NRI.
3. Know your Rights and Entitlements for Owning Property
As an NRI, you can invest in both- residential as well as commercial properties in India. However, you cannot directly purchase properties like agricultural land, farmhouses, etc. You can be the owner of such estate if you inherit them or receive them as a gift. But when it comes to loan interest rates, Home loan rates for NRIs are the same as for those for resident Indians. By paying requisite tax, you can also earn profits on investment concerning sources like rental income, short-term capital gains, and long-term capital gains.
4. Availing Home Loan
As per the law, NRIs are also eligible to avail of a home loan if need be. They can apply for a home loan for up to 80% of the property value, which can come in handy for their convenience.
Some more points that NRIs must know:
- NRIs cannot purchase more than two residential properties in India.
- Documentation and procedures for property purchase include providing a local contact address and appointing a reliable person as power of attorney.
- Holding properties in India do not attract any tax for them. However, if giving property on rent is taxable.
Investing in real estate in India, including Pune, is thus a rather uncomplicated procedure for NRIs. Many of the NRIs are showing a keen acumen by investing briskly in Pune as time’s just right for it.