Latest Property News on 'Non Resident Indian (NRI)'

MOIA Flooded with NRIs Property Complaints

A real-life version of `Khosla ka ghosla’ is being played out with an increasing number of non-resident Indians (NRIs). Complaints of real estate deals going sour, illegal encroachment and unauthorised occupation of properties have flooded the ministry of overseas Indian affairs (MOIA). In fact, with the recent Satyam scam casting its shadow on Maytas Properties, apprehensions amongst overseas investors has deepened. “Property dispute is one of the most frequent complaints by NRIs. They are unable to protect their property due to long absences or lack of awareness of laws,” Vayalar Ravi, overseas Indian affairs minister, said.

The largest number of complaints are from major real estate markets like Delhi, Mumbai, Bangalore, Andhra Pradesh, Kerala and Punjab. The nature of the complaints are mainly protection of property that has been forcibly occupied or encroached, dispute relating to division of property or inheritance and cases where investors have been cheated by real estate developers. The minister added that following this flood of complaints, he had written to state governments asking them to appoint nodal officers for civil, judicial and police matters. These nodal officers are independent from NRI cells that are dedicated for issues related to financial or welfare interests of overseas Indians. Read More »

NRIs and Home Loan India

Indians living abroad are equally eligible for housing loans from banks in India, but with some riders. Christmas and New Year see an influx of Indians based abroad. This year is no different. This time, though, the non-resident Indians (NRIs) are taking a closer look at real estate here. The correction in property prices has induced many, who aim to return to India in the near future.

An NRI is an Indian citizen, holding a valid Indian passport and staying abroad for employment, business or vocational purposes. According to the Reserve Bank of India and the Income Tax Act, an NRI can buy real estate in India and avail housing loans on residential properties from banks. They are only denied purchase of agricultural land, farm house or plantation property in the country. Calculation of eligibility and interest rate for NRI loans is not very different from that of the Indian residents. Read More »

Dubai Debt Crisis May Invoke Short Term Rise in NRI Remittances from Dubai

The $60 billion-odd Dubai debt crisis could spark an increase in remittances from Dubai, in the short term, as uncertainty and nervousness spook the NRIs confidence in local banks in Dubai. However, a section of analysts says that remittances could see a slowdown in the medium term, due to job losses arising out of the impending debt restructuring of the beleaguered institutions. The financial crisis in the short term might lead to a flight to safety of investments from Dubai, said Mr Amit Rathi, MD, of Anand Rathi broking firm.

Indian banks may witness a marginal increase in inflows as the non-resident Indians in Dubai look to shift their surplus money into safer markets, he added. The inward remittance into India last year was approximately $50 billion, according to RBI figures. Out of this Dubai’s share is around 24 per cent, said bankers. Mr C J George, MD, Geojit Financial Services, said that in the short term income arising out of remittance or investment services could see an increase, due to the rise in inflows into India from Dubai. Read More »

NRIs Return Boosts Residential Demand

An estimated 25 million NRIs living in 130 countries have remitted US$52 billion so far this year. In fact India topped the list of countries in remittance flow followed by China and Mexico, according to World Bank report on Migration and Development Brief. Migrant remittance flow to developing countries will be around $317 billion this year. It was $338 billion in 2008, higher than the previous estimate of $328 billion. A substantial portion of the NRI/PIO investment was directed towards Indian real estate.

The impact of global slowdown, job losses and unviable job offers has necessitated a section of NRIs to return to Indian shores. Time was when Gulf NRIs were bristling with confidence on noticing certain Gulf countries like Dubai in the UAE, Qatar and Kuwait changing local land laws to permit expatriates to invest in local real estate. Read More »

Govt calls Meeting to Resolve NRI Property Disputes

The ministry of overseas Indian affairs is bringing together real estate developers, government officials, both from the Centre and the states, and Indians living abroad in a first-of-its-kind seminar aimed at resolving property disputes in Delhi on Monday. “The seminar would cover the role of different government and private agencies, measures to prevent disputes…and speedy way of disposal,” said a posting on the website of the Indian consulate in New York.

Indians living abroad are a “major source of foreign exchange remittances that has led to the present state of comfortable foreign exchange reserve in the country”, the posting adds, and a substantial amount of money earned by non-resident Indians (NRIs) is spent on buying property back home. The ministry has been receiving a lot of complaints from Indians living abroad, mostly in the US, the UK and Canada, about properties not being delivered on time or usurped by local people, said Vayalar Ravi, minister for overseas Indian affairs. “This is an attempt to help NRIs and PIOs (persons of Indian origin) resolve disputes with property developers and state bodies in India,” he added. Read More »

NRI Billionaire Bob Dhillon all Set to Foray into Indian Real Estate

Canada-based NRI billionaire Bob Dhillon is all set to make a foray into India. Dhillon’s Canadian real estate company, Mainstreet Equity, which owns more than 6,000 rental properties across Canada, is likely to set up a billion dollar India-specific real estate fund to mark its entry into the Indian real estate market. Dhillon has had talks with Haryana chief minister Bhupinder Singh Hooda showing interest in the state’s vast realty market. The CM has also assured that Dhillon would get full support from the state government in case he buys land.

Dhillon, along with a Canadian delegation headed by the Canadian Prime Minister, also had a series of meetings with Prime Minister Manmohan Singh and Planning Commission deputy chairman Montek Singh Ahluwalia. “With the North American market stagnating, India is now the most attractive market for real estate and we are aiming at almost a billion dollars, which will be deployed in tranches over next three years,” said Dhillon. Read More »

Real Estate Collapse in Dubai will Affect Indian HNIs

The leveraged asset purchases of Dubai-based wealthy non-resident Indians in the past few years may begin to haunt them, as the collapse of real estate prices in the emirate prompts calls for additional funds as margins which may force them to sell some Indian assets, experts say. “Indian HNIs (high net worth individuals) made good use of easy credit lines in the past two years,” says Dubai-based JRG International Brokerage CEO PK Sajitkumar. “They even made investments using leveraged money, investing into India-focussed funds, buying freehold property and buying into Indian shares through participatory notes,” he said. “The situation is now so bad that many of these people will have to sell their leveraged assets, may be at a loss, to meet margin calls or retire debt.”

Slide of real estate and other asset prices in the Middle East has begun to accelerate after Dubai World, the government-backed conglomerate, last week sought moratorium on debts of about $59 billion. This has led to lenders seeking additional collateral for assets funded so far. Those unable to deposit more funds with the banks may be forced to sell assets, including Indian stocks, or even think of selling Indian real estate. The fall in Dubai property prices has gained momentum over the past two weeks with rates going back to pre-2006 rates. Read More »

NRIs and HNIs Eying Foreign Shores for Real Estate Investment

With real estate prices in the niche segment in India showing signs of robust recovery, high net worth Indians and NRIs are again eyeing foreign shores for real estate investments. With real estate prices going down by a whopping 25-30% and hitting rock bottom in some geographies and distress asset sales becoming the order of the day, there could be no better time than this to pick up a dream home abroad. And experts confirm that the decision to buy property overseas is driven strongly by an end-use perspective. Some of the places which now offer good investment opportunities for HNIs include the Middle East especially Dubai. In USA it’s particularly New York City, Virginia and San Francisco. The others include Singapore and UK, according to Rajiv Sahni, partner, real estate practice, Ernst & Young.

Mayank Patel, group chairman & CEO of Azibo Group, a London-based private investment firm, who is himself a real estate investor agrees that globally there are huge opportunities to invest in real estate because of distress sales. “I am an investor in real estate myself and feel that the UK provides good opportunities for high net worth non-resident Indians and people of Indian origin. This is mainly because the pound sterling has fallen against the Euro and the dollar and prices of various prime properties are much lower today than they were about a year ago. So NRIs who are based in the US or Europe will find good deals here. Also worldwide, in locations across geographies such as Dubai, Abu Dhabi, France, Spain, Florida and New York, property prices have fallen 30% over the last one year, because of distress asset sales and the credit squeeze by banks and FIs. While the Indian community globally, does have sophisticated portfolios, the fundamental business culture is one of going in for fundamental investments in real estate - and that’s the reason that many of the HNIs are grabbing the investment opportunities globally,” says Patel. Read More »

Increase in NRI Real Estate Investment

An estimated 25 million overseas NRIs living in 130 countries are nowadays remitting billions of dollars back home. Net inflows from NRIs have witnessed over twenty-fold rise to $4 billion in the fiscal 2009. A portion of this goes into real estate ever since liberalisation of rules by the government on NRI/PIO investments in real estate.

It is not only the easing of investment norms but the tax advantages that accrue to an investor that is driving more investments towards real estate back home. Moreover, among the five million NRIs living in West Asia are many keen to invest in real estate here as expatriate investments in countries like Dubai took a nosedive recently. Similarly, not all NRIs can afford to invest in overseas properties due to very high costs, and the high cost of managing them. Read More »

IndiaHome Property Exhibition in Dubai Receives Positive NRI Response

The IndiaHome Property Exhibition, presented by Citibank NA and jointly organized by the Dubai-based Media Agency Middle East and Signature Events, has received a positive NRI response as 18 of India’s most reputed real estate developers displayed their properties at Raffles Hotel in Dubai. HE Venu Rajamony, the Consulate General of India in Dubai, inaugurated the 2009 edition of the IndiaHome Property Exhibition. Aimed at creating a direct interface between the NRIs and some of the biggest names in Indian realty, the exhibition offers an ideal platform for a seamless home-buying experience to the Indian community in the UAE.

Ashish Mehrotra, Business Manager, Consumer Assets, Citibank India, said, “Our endeavor with the IndiaHome Property Exhibition is to create a convenient interface for NRIs with India’s realty industry and help make the purchase process seamless. NRI customers can avail loans ranging from INR 20 lacs to up to INR 5 crores for ready-to-move and under-construction properties. Loans can be obtained under flexible repayment plans linked to construction milestones and periodic payments can be conveniently routed through the Citibank NRE/NRO Account, which comes with a host of attractive banking features.” Read More »