Since the last five years, India has seen significant rise in property prices. Since the value of Indian Rupee has been declined against American Dollar, it is just a marginal hike for the Non-Resident Indians. Especially for these Indians, real estate investment in projects like DLF Sky Court, DLF Almeda in India has become more lucrative and affordable.

1. How Indian Overseas Can Invest in Real
Estate in India?
Since the last five years, India has seen significant rise in property prices. Since the
value of Indian Rupee has been declined against American Dollar, it is just a marginal
hike for the Non-Resident Indians. Especially for these Indians, real estate investment in
projects like DLF Sky Court, DLF Almeda in India has become more lucrative and
affordable. In fact, every NRI makes investment queries about investing in Indian
residential property at the OFIC (Overseas Indian Facilitation Centre). Due to the
approval of Regulation & Development Bill for real estate investment from the Union
Cabinet, the sector is expected to improve protection for the customer’s interest and
gain more transparency.

2. But as a NRI, you should follow some fundamental guidelines to research Indian real
estate market.
In the Beginning
First of all, consider the type of real estate. According to the RBI guidelines, NRIs are
not allowed to invest in farm land, plantations and agricultural lands in India. For
doing that, you should check the documentation if you want to invest in land.
Make sure to see original title deed which is merely in the seller’s name. In case seller
shows duplicate copy and doesn’t share original, then it is likely that he took a loan
against it. In order to have flawless deal till the end, conduct a proper check.
In addition to that, make sure that all the clearances have been secured by the court of
law, including municipal and environmental clearances, and authority to shift the entire
possession of whole plot or land to each owner of the apartment in the society after
project completion. Also ask for such credentials in under construction projects in order
to invest safely. It is better if you seek professional assistance in order to assure that all
the important approvals have been secured by the builder.
While Making Purchase
After proper negotiation and due diligence, if you have identified the trustworthy
residential options like DLF The Primus and Dlf Regal Gardens, you can reach at the
agreed-upon sale price. You may get sales agreement subsequently on the stamp paper
of Rs. 50. It states the advance payment, final amount, terms of installment and the
amount due.
After completion of sale deed, you should register at sub-district magistrate or sub-
registrar. It is important to mention your foreign address in the sales contract. As a
buyer, you can appoint a power of attorney to anyone in India who can operate on your
behalf. Make sure your holder of power of attorney is notarized in your country where
you are living in.

3. You can get the property registered in your name and the power of attorney holder will
sign on your behalf when asked by the concerning authorities. You can pay off the
purchase price from either money withdrawn fromordinary banking channels in India
or cash from your non-resident account.
About Taxation
Besides stamp duty and registration amount, you also have to pay service tax in
transaction. The amount varies according to property. For example, if you are acquiring
property from a developer, then 12.36% of service tax is charged on 25% of the total sale
price of residential unit below 2000 sq. ft. or 30% for apartments whose area is bigger.
On the purchase price of property, you will have to pay stamp duty for one residential
unit or built-up property. According to the state, stamp duty amount varies. In Delhi,
stamp duty payable is categorized into three slabs; 4% of value of property for women
owners, 5% in case of joint ownership for man and woman and 6% in case of sole
ownership for man. In all property transactions, 1% of registration fee is charged.
Author Bio
This post has been written by Ashok Phillips who is a real estate agent in Gurgaon and an
investor as well. He provides professional advice to the property seekers in NCR region. He is
constantly researching for the new projectsand the development prospects of DLF Park Place and
DLF Garden City plots future. To know more, follow him on Facebook, Twitter, linkedin or
Google+.