5 Factors NRIs need to Consider before Investing in Pune
Pune is amongst India’s top cities preferred by NRIs for real estate employment opportunities and huge Return on investment property buying in Pune is a lucrative option for NRI investors. Besides, the cosmopolitan culture, connectivity to Mumbai, and great weather all year round are some other reasons why NRIs love Pune.
It is estimated that over 28 million Indians living overseas. When they repatriate their income back home, it is the world’s largest inward remittance. (approximately $70 billion annually). The bulk of this NRI money goes into the real estate sector.
Let us run through a few pointers that NRIs must keep in mind before making any investment in Pune.
5 Factors to Consider Before Investing in Pune
1. Excellent ROI and high rental demand
Pune offers excellent employment opportunities, which keep both commercial and residential real estate in high demand at all times. Properties in Pune are affordable when compared to other major cities.
2. Outstanding infrastructure
As a city, Pune offers its residents a world-class and enriched lifestyle. From excellent restaurants, gourmet cafés, luxury hotels, and spas, to shopping malls, multiplexes, reputed schools, world-class hospitals, high-end commercial hubs. Pune is well connected to India’s commercial capital, Mumbai. This kind of development has given rise to several high-quality and ultra-modern residential and commercial projects in the city.
Suggested Read: Smart Tips for Real Estate Investment in Pune
3. Education & Employment Hub
Pune is home to the largest number of software companies in India, followed by Bengaluru and Hyderabad. The city is also known for its reputed educational facilities.
4. Attractive Discounts on Properties
Several real estate developers are dishing out flexible payment plans and discounts on the purchase of flats/apartments. Besides, there are deferred payment schemes that have empowered home buyers and investors to reconsider investments in other avenues and veer towards real estate.
5. Rules & Laws for Investment, Easy Loans
- An NRI or Person of Indian Origin (PIO) can own both residential as well as commercial properties in India.
- There is no restriction on the number of properties you can buy.
- The rules for any such property transaction fall under the Foreign Exchange Management Act (FEMA).
- The financial transaction must be in Indian rupees (INR) and through normal banking channels using an NRI account.
- NRIs can apply for a home loan in India for up to 80% of the property value, depending on individual eligibility. The loan can be repaid in various ways, including inward remittance through regular banking channels, by debit to self NRE/FCNR (B)/NRO account, and rental income earned by the property.
- As an NRI, you can make a profit on the investment regarding rental income, short-term capital gains, and long-term capital gains. All of these incomes are taxable. However, the tax slab rate varies, and exemptions can be claimed under sections 54, 54F, and 54EC.
- An NRI investor can avail of the same tax benefits on property purchases as a resident Indian. As an NRI, you can claim a tax deduction of Rs. 1 Lakh under Section 80C of the Income Tax Act.
NRI investment cannot be done in agricultural land, farmhouse, and plantation property (they cannot purchase) unless they’ve been gifted or inherited. To acquire agricultural land/plantation property/farm house in India, NRIs must get approval from the RBI and the government.
There is no dearth of residential projects in Pune. However, choosing a good developer is critical. Since NRIs are based outside of India, it is important to pick a developer with a proven track record of timely delivery of projects, credibility in the market, and quality construction. In case, you have looking for one such developer, Gini Constructions is a good bet. You may check out Gini Belvista in Dhanori & Gini Aria in Yeolewadi from Gini Constructions. This group is a well-known name in the Pune reality circle and these two projects offer you a range of apartments to choose from.
NRIs like to have a place back here in India, their homeland. The RBI’s regulations on it are fairly easy as and currency rates are favorable too. So if you’re an NRI looking forward to buying property in Pune, here is your ready reckoner!