Pune has been a preferred choice among expats to invest in a property for a while now. The appreciating value of the dollar has, however , given further push to demand from NRIs for residential properties in various cities, including Pune. As a result, with real estate becoming cheaper for NRIs, many of them are actively seeking residential property investment opportunities in tier II cities such as Pune, points out Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India. “The government has been making very proactive policy changes that are clearly aimed at routing more NRI investments into the country.
Why Invest in Pune ?
“For instance, NRIs can today buy any number of commercial or residential properties in India. The rider stating that they can repatriate sale proceeds of only two units has not been much of a dampener since a number of NRIs are seeking to come back to India eventually. Also, they have the convenience of being able to invest in India-based properties via remittance of funds through normal banking channels, or by investing through funds in NRE/FCNR/NRO accounts maintained in India.”
Moreover, NRIs areas eligible for availing of home loans from NHB-approved Indian financial institutions as resident Indians are, provided they meet applicable RBI terms and conditions. NRIs can mortgage residential property in India with an Indian financial institution without any approval from RBI, though they do require RBI’s approval for mortgaging India-based properties with a foreign financial institution. Finally, NRIs are free to rent out their residential property without the approval of RBI in India. Rent received can be credited to NRO/NRE accounts or remitted abroad.
The trend towards property exhibitions has also made it easier for NRIs. Rajeev Sakhuja, Business Manager, LIC Housing Finance Ltd. (Kharadi, Kalyani Nagar) points out that when LIC Housing Finance Ltd participated in the recent Times Property Showcase in Pune on May 26 and 27, there were certainly many inquiries from NRIs. “Such exhibitions are helpful to NRIs because they get to know about the properties available in the city and the home loan options; they act as a one-stop-shop. Considering the volatility in the market, LIC Housing Finance Ltd gives transparent service to consumers, with convenient fixed and floating interest rates, and a convenient legal documentation process,” he adds; all these are features that NRIs look for.