Things to keep in mind by NRI - Commercial Investment
Change is inevitable There were times when Indians considered residential houses, plots, and gold to be the only assets. In recent years, there has been great traction toward the best commercial property investment in India. The main reason is that people get a consistent income flow in the form of rentals. It is a fact that NRI commercial investment is thriving in India. No wonder NRIs are seizing opportunities to invest in commercial properties in their homeland.
Based on a report, NRIs invested around $13.1 billion in Indian real estate in 2021. There is a significant growth of 12% in 2022.
In this blog, let us delve deep into NRI investment in commercial real estate.
NRI investors have started becoming aware of commercial real estate as a big asset. There is a steady cash flow with impressive rental returns. It is because of attractive ROIs that the commercial real estate market is witnessing a boom, regardless of market conditions. Before investing in commercial properties, NRIs must understand a few important things.
Tax Advantages and Foreign Exchange Rules
The interesting part is that NRIs need no approval from RBI to invest in the realty sector of India. But every NRI needs to follow Indian laws and taxation norms while investing in real estate. You must abide by the Foreign Exchange Management Act of India (FEMA) regulations. If you are worried about taxation, get yourself familiar with the tax benefits allowed under the Income Tax Act.
Purchasing High-Quality Markets
Remember, locations play a key role when investing in commercial property. Get an insight into which Indian cities you should invest in based on ROI. The cities like Chennai, Bangalore, and Hyderabad, the South Indian Market, have seen a significant rise in e-commerce and IT-related businesses. As a result, these cities provide good returns on investment. If you need to know the latest trend in real estate in India, get connected with a realty advisor. It is vital that you stay updated on the Indian real estate market.
NRIs are eligible to invest in multiple properties. They are allowed to buy residential or commercial properties. But they cannot invest in agricultural lands or farmhouses without getting RBI’s permission.
You need to have an NRI account in an authorized Indian Bank in order to purchase immovable property in India. The transaction needs to be done in Indian currency. It is mandatory that NRI need to have a Non-Resident Ordinary Account (NRO), Non-Resident External (NRE) or Foreign Currency Non-Resident account (FCNR).
Power of Attorney (PoA) is a legal document with which an NRI can authorize another person to attend the registration or execution of the documents pertaining to purchasing a commercial property. Hence, it is mandatory to have a registered version of PoA. You can give that Specific Power of Attorney to an Indian National. Thereby, they are authorized to complete all formalities as per the wish of NRI.
In your absence, the commercial property can be rented or leased. The rental agreement should be done under the guidance of a property attorney. A civil litigation lawyer can help you, screen tenants, create a rental agreement, and collect rent online.
Brigade Group is the most preferred destination for commercial space for sale in South India. Commercial office spaces yield more profits than residential properties. In addition, demands for office spaces are increasing every year. If you are looking for a specific office space for rent in Whitefield, Bangalore, it is indeed a lucrative choice for an NRI. Connect with Brigade to invest in a commercial property.