During last year after the Reserve Bank of India issued clear norms for Non Resident Indian to invest in property, and with NRIs holding Indian passport no longer requiring prior permission before investing, there was forge in NRI investment in Indian Real Estate sector. As per developers and experts in the real estate sector this after RBI has spelt out this order regarding property investment and repatriation, investing in indian real estate has become more favorable to the NRI’s. As per the decision by RBI NRI’s can buy residential / immovable property in India, rent it out, transfer or sell it, if required. But the regulations are still on with regard to the purchase of agricultural land, plantations and farmhouses. We have witnessed that in the past year NRIs, including young professionals have invested in property back home, especially in the luxury and premium categories.

Non Resident Indians wanted to have a house of their own in their home country as an investment and these real estate investments can be used as used a holiday home, which stayed fully furnished and will be used for a few weeks annually. But the situation has changed as the real estate market is down for the past several months. However, developers are having the opinion that NRIs are investing more in residential projects, compared to retail or office real estate, after the recent home loan interest rate cuts by the several banks in india and price cut by major indian real estate developers.