The real estate sector of India has always received steady and significant investments from NRI investors. Among the cities that are most favored by NRI investors, Pune, India ranks comparatively high. The IT hubs, cosmopolitan culture, great weather, and educational institutions, are some of the reasons why NRIs choose to invest in Pune, India. After the incorporation of regulatory and economic reforms such as RERA and GST, there has been a marked increase in NRI ventures in Pune, India particularly in the housing sector.
Reasons why NRIs invest in flats in Pune, India:
- Exceptional infrastructure: Pune, India is home to the largest number of software companies in India, followed by Bangalore and Hyderabad. The city is also known for its renowned educational facilities. Pune, India is well linked to India’s commercial capital, Mumbai. This type of development has given rise to quite a few high quality and avant-garde residential and commercial projects in the city.
- Outstanding high rental demand and ROI: Pune, India provides outstanding employment chances, which keeps the residential and commercial property in high demand always. Properties in Pune, India are reasonably priced when compared to other major cities.
- The perfect home: As a city, Pune, India offers its tenants a first-rate and enriched lifestyle. From outstanding restaurants, luxury hotels, and spas, gourmet cafés, shopping malls, reputed schools, multiplexes, high-end commercial hubs, world-class hospitals – Pune, India has something for everybody. The pleasing weather round the year, outstanding physical infrastructure, ultra-luxurious residential projects, and reasonably priced costs make Pune, India by far the most attractive investment option for NRIs.
Prime locations preferred by NRIs
Owing to the fast-growing returns and rentals on the property in Pune, India NRIs are investing in under-construction properties that are either nearing completion or are ready-to-reside in. Baner, Hinjewadi, Kharadi, Wakad, Wagholi, Kalyani Nagar, Viman Nagar, Magarpatta, and Nagar Road are localities that top the directory of NRI investment locations. All these areas are linked with the IT/ITES sector and have an outstanding track record as much as rental value and capital value is concerned. Chakan, Pimpri-Chinchwad, Talegaon, are also well-known and profitable choices. Among NRIs looking to make luxury residential investments in Pune, India localities like Salisbury Park and Koregaon Park are popular. There are several row houses in Pune, India as well for the NRIs to invest in.
Rules and regulations for NRI investments
If you are an NRI looking to invest in Pune, India here are a few vital rules and regulations to keep in mind.
- According to the Foreign Exchange Management Act, an NRI can invest in commercial and residential properties in India. But, any farmhouse, agricultural land, and plantation property can only be possessed if it is obtained by means of legacy or is gifted.
- The payment for purchase can be made out of funds remitted to India through a usual banking channel or through funds held in NRE/ FCNR (B)/NRO account maintained in India. Payments made outside of India are not permitted.
- NRIs can submit an application for a home loan in India for up to eighty percent of the property cost, based on individual eligibility. The loan can be paid back in several ways, together with inward remittance via regular banking channels, rental income received by the property, and by debit to self FCNR/NRE (B)/NRO account. NRIs can increase finance from financial institutes to buy residential flats, bungalows, and apartments from approved real estate developers. In Pune, India many real estate developers help NRI property purchasers to get housing loans fast. NRIs have favored clients for financial institutes because of their fast repayment abilities. You can pay back utilizing your earnings in INR by way or rent, inward remittances, etc. or by dividends.
- As a non-resident Indian, you can make a profit on the savings in regards to long-term capital gains, rental income, and short-term capital gains. All of these earnings are taxable. But, the tax slab rate differs, and exclusions can be claimed under segments 54EC, 54, and 54F.
- An NRI investor can get the same tax advantages on property buy as an Indian resident. As an NRI, you can claim a tax subtraction of INR 1 Lakh in Section 80C of the Income Tax Act.
With rule changes such as GST and RERA in place, purchasing a home in India has become considerably more transparent, profitable and comfortable. It is an outstanding moment for NRIs to travel around the lucrative housing market in cities such as Pune.
Points to consider, for NRIs investing in the realty market of Pune, India
- Know the reason for buying the flats in Pune, India – whether it is for renting out, self-use, investment or resale.
- If you are planning to move out later, check the existing rental market to determine the return on investment.
- If you are planning to move in, think about whether you will do so soon or later in the future.
- Before you make the first payment, check with banks your eligibility for a home loan.
- If you are purchasing a property for self-use, confirm if the physical and social infrastructure in the area convenes your necessities.
- Always check with a property professional, to know more about the neighborhood and for elasticity in selling and buying the property.
Government benefits
The Government of India has also made sure to entice NRIs to invest in residential projects in India, as rules of Foreign Exchange Management Act or FEMA and the RBI or Reserve Bank of India have made investing in India simpler for NRIs. There are also exhilarating offers to help them earn profits. Tax implications are also eased as the interest on a home loan is accountable for deduction from NRI’s taxable income, that too devoid of any upper limit. NRIs looking to invest in ongoing projects in India, especially in the cities like Pune, India can expect good returns on investment.
Housing.com is a well-known real estate search portal where NRIs searching for flats in Pune, India can get several options.