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Property in India - A Profitable Investment |
Indias stand in the global economy is undeniable. With every passing year, the economic prowess of India is steadily rising, a fact that can be witnessed with the sensex reaching record breaking highs.
Besides, the IT and the BPO sectors of India are one of the strongest in the world. And every major global player is shifting base to grab a piece of this lucrative pie. Indias strength lies in the abundance of young, educated, and skilled manpower which is surprisingly cheap compared to those from other parts of the world. Today, this young population is gradually climbing up the social and economic ladder bringing forth a new generation of entrepreneurs and financially-independent individuals.
This phenomenon has led to the emergence of a group of suave people that have no qualms about spending money for anything. No wonder, India is turning out to be a hub for what is cool and happening, thus forcing big banner designers and sports car manufacturers to form a beeline.
With so much happening in India coupled with a myriad of companies from around the world thronging to get in, a new wave has been triggered. The demand for retail and residential properties has shot through the roof Real Estate India is currently witnessing a huge boom and it is the right time to be investing in immovable properties - both retail and residential.
To substantiate that claim, the global real-estate consulting group Knight Frank has ranked India 5th in the list of 30 emerging retail markets and has predicted an overwhelming 20% growth for the retail segment by 2010. It has also brought to light that investment in the retail real estate segment at present yields 13-16% returns.
Furthermore, another survey by real-estate consulting firm CB Richard Ellis (CBRE) has derived that office space in Mumbai is more expensive than Manhattan and has marked Mumbai as the worlds 15th most expensive place.
All these numbers add up to an impressive investment opportunity. And the channel to do so has been logically paved with India opening its doors wide open by formulating its foreign direct investment policies in such a way that makes it easy for both NRIs and foreign citizens to invest in properties without any problem. To that effect, the Reserve Bank of India (RBI) has allowed NRIs to use their foreign currency assets which have been earned and accumulated by them lawfully while they were residing outside India. Also, The RBI has granted general exemption to them from the requirement of surrendering foreign exchange and income.
As for persons who are not citizens of India (whether resident in India or not) and companies (other than banking companies) which are not incorporated under any law in force in India are required to obtain prior permission of the Reserve Bank to acquire, hold, transfer or dispose of by sale, mortgage, lease, gift, settlement or otherwise any immovable property situated in India. This however, is not applicable to the residents of Nepal and Bhutan.
Keeping in mind all these factors, one thing becomes quite clear, which is, apart from other sectors, investing in property in India is fast becoming a popular and a profitable choice for many foreign investors. While this proposal may sound new, the return on investment it offers are worth considering it seriously. Hence for all those India bound, keep your eyes open for properties. It might be the right choice!About AuthorRakesh Malhotra, an associated editor to http://www.indianrealestateforum.com , is a contributing author to the http://www.indianrealestateforum.com for distinct article sites/journals. Please feel free to visit http://www.indianrealestateforum.com to discuss and exchange ideas related to Real Estate. Or write to him at
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Source: ArticleTrader.com
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