Points of interest for NRIs investing in Indian Realty IndustryApril 9, 2017

Points of interest for NRIs investing in Indian Realty Industry

There are many people who have become millionaires today because of investing in real estate due to its potential of generating capital returns as well as rental yields. With the dwindling rate of the rupee in India as well as the booming real estate industry in India, it’s no wonder that many NRIs are investing in on this cash cow! While the real estate prices in the world are stagnating, the rates in India are escalating and with the new Prime Minister of India pounding on his agenda of ‘Invest in India’, the NRIs are indeed taking interest.

Even NRIs who have settled down abroad now prefer to own a residential property back home; aside from being a great investment, it can also serve as a future retirement home. As long as you are an NRI holding an Indian passport, you have quite similar rights to the resident Indians in terms of property ownership under the FEMA (Foreign Exchange Management Act) rules and can invest in residential and commercial properties. The big real estate players regularly organize property shows and exhibitions to woo the cash-rich NRIs to invest in their properties.

However, it hasn’t always been plain sailing for NRI investors as there are some fraudulent realtors who take advantage of the fact that as an NRI, you are rarely around to check on your investment. Here are some tips for the NRI to consider before joining the bandwagon of property-owners in India.

  • As long as you hold an Indian passport, you don’t need prior permission from government agencies before investing. You can either do the transaction directly, or through another person to whom you have given power of attorney (POA). You can own as many residential or commercial properties as you can afford, but the transactions will come under the FEMA act.
  • You should have a clear purpose in mind before investing in property – is it for personal use or for renting out purposes – and choose the location of the property accordingly. Better returns can be expected from renting out if you invest in properties in developed areas where better infrastructures are available.
  • Builder credibility is an important factor to consider before delving into any transaction. A primary check of the track record of the builder should be done along with project implementation history including delays in delivery time. You should also check whether the builder has supplied all the amenities agreed upon in the terms of the contract. Also, do confirm the legality of the property under question and whether all necessary permissions and licenses were taken before building. There are quite a few reliable realtor companies in Kerala including Artech Realtors who have a proven track record.
  • NRIs in India get the same tax benefits as residents get as far as property tax rules are concerned and it’s recommended that they stay invested for a period of at least three years to avoid short-term capital tax gain. If the property is given out for rent, the income is taxable, but they are exempted from wealth tax if the property remains vacant.

Finally, NRIs would do well to get a good property manager who would also advise them on the right time to exit, something that every investor deserves!


properties to invest in Trivandrum

Top Residential Properties to Invest in Trivandrum

Trivandrum, the capital of Kerala, is a bustling city that has seen significant development over the years. The city is… Continue reading Top Residential Properties to Invest in Trivandrum

Read More

A Definitive Guide to Home Insurance

Home insurance is a crucial aspect of home ownership in India that is often overlooked. It is a type of… Continue reading A Definitive Guide to Home Insurance

Read More

Related Projects

A few of our inspiring projects

Apartments in Trivandrum

Being the state political capital, an educational hub as well as home to Kerala’s largest and rapidly-expanding IT hub, Artech has realized the growth potential of Trivandrum as a prime spot for real estate investment. Artech builders in Trivandrum offer a number of lavish and eye-popping apartment projects located in classy niche areas to inspire you.

Apartments in Thrissur

The city built around the base of a 65-acre hillock is steeped in rich cultural and spiritual history. Aside from being known as the cultural hub of Kerala, Thrissur is also known as a major business center. Artech offers Thrissur, one of its finest creations to-date, the Artech Gateway, featuring exclusive lifestyle apartments.

Apartments in Kollam

Located on the banks of the scenic Ashtamudi Lake, this ancient city dating back to the biblical times, has a strong commercial reputation. The verdant beauty of this city also attracts many people to set-up homes here. As flats in Kollam are in great demand, Artech Realtors have a number of luxurious projects offering superior homes with amazing blue vistas to its residents.

Apartments in Kottayam

Kottayam has always been at the forefront for education and literacy. Aside from this, it’s a peaceful town that thrives on commerce. Artech Realtors have given Kottayam their first taste of high-end luxury living with Artech Rio. The unending views of the surrounding greenery, the meandering river and outstanding amenities makes life in these classy apartments one-of-a-kind.

Apartments in Thiruvalla

Thiruvalla, which has earned the moniker the ‘Land of the NRIs’ is situated on the banks of the Pamba and Manimala rivers. With a paucity of suitable homes for the cream of the society, there was a glaring need for luxury flats in Thiruvalla. The blissful Artech Kaazhcha apartments offer an inspiring mix of high-end comfort and luxury.



The information provided on this website is meant for general guidance. Though we have taken utmost care on the accuracy of the contents, the customer should make an autonomous assessment of the contents. However, the prospective buyers should rely upon the terms and conditions of the sale and construction agreement between the Builder and the Client.

The visuals of the projects symbolize artistic impression only. The information contained herein including the fittings, finishes, features, floor size and color etc. in the visuals are subject to change. However, the plans & specifications indicated in the Builder and Client agreements are final and we have not authorized anyone to make any oral commitments or promises on our behalf in regard to the plans and specifications of the apartments/projects.

For any clarification please feel free to call +91 9847 600 600 or walk into our offices. Our representatives will always be at your service.