In the last year, the Indian real estate sector has undergone major changes. With the introduction of the Real Estate (Regulation and Development) Act, 2016 and the GST, transparency of operations has increased drastically. The power has been returned back to the buyers and consumers of this sector and stipulations have been put in place to protect them from any more fraudulent agents and activities. This has led to increased trust in the system, and this isn’t restricted to just Indians living here.
Investment in the real estate sector is a major interest area for Non-Resident Indians (or NRIs). Under the Foreign Exchange Management Act, they have major incentives take advantage of the currency exchange rate, which makes this is the most lucrative sector to invest in. Since RERA has been put into place, this interest has naturally escalated. This interest is primarily directed towards the residential sector.
Earlier, the real estate sector was constantly troubled due to fundamental issues. There was no transparency in dealings and project delays often went on for years. In such cases, the benefit of investing was less than the financial and mental cost to an investor. RERA, on the other hand, is empowering buyers and giving them the reign to execute their own rights. This has restored the confidence of buyers, both domestic and abroad.
Another important aspect for NRI is the establishment of the websites for each state. Builders have to create a page for every project which will contain all the information about it, right from the name and address of the promoter to project completion date. It will also be constantly updated with regard to the development of the project and the current progress. This is clearly very helpful for someone who wants to invest in property here but isn’t living in the country to follow-up offline. Before even considering a project, NRIs can look up all the information about it including the status of the land and intended use. It will assure them that there will not be major problems later on.
Multiple people, such as Credai-Maharashtra president Shantilal Kataria, have reported that inquiries from NRIs are pouring in on online forums. This has also given incentives to sellers to buck up and facilitate easier operations in the real estate sector. While there has been backlash against RERA from the side of builders, increased transparency and smoother functioning ultimately results in a better system for everybody. And when it incentivizes more people (including NRIs) to invest in the market, it also injects much-needed capital into the economy.
The real estate market in India has been tumultuous till now. For all agents, buyers, and sellers involved, it is very important to stay informed about the laws and regulations that govern this sector. Only then can you make wise choices and protect your finances.