Properties in Pune

NRIs Make a Beeline for Properties in Pune

India’s real estate sector has always been received steady and significant investment from NRI investors.

Among the cities that are most preferred by NRI investors, Pune ranks relatively high. The cosmopolitan culture, IT hubs, educational institutions, and great weather all year round are some of the reasons why NRIs choose to invest in Pune. After the implementation of economic and regulatory reforms like GST and RERA, there has been a marked upsurge in NRI investments in Pune, especially in the residential sector.

Top reasons why NRIs invest in a home in Pune:

Excellent ROI and high rental demand: Pune offers excellent employment opportunities, which keeps both commercial and residential real estate in high demand at all times. Properties in Pune are affordable when compared to other major cities.

Outstanding infrastructure: 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. 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.

The ideal home in India: 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 has something for everyone. The pleasant weather round the year, excellent physical infrastructure, ultra-luxurious residential projects and affordable prices make Pune by far the most attractive investment option for NRIs.

Prime locations preferred by NRIs

Due to the fast-growing returns and rentals on property in Pune, NRIs are investing in under-construction properties that are either nearing completion or are ready-to-occupy.

Hinjewadi, Baner, Wakad, Kharadi, Kalyani Nagar, Wagholi, Nagar Road, Viman Nagar and Magarpatta are localities that top the list of NRI investment destinations. All these localities are connected with the IT/ITES sector and have an excellent track record as far as capital value and rental value is concerned.

Talegaon, Chakan, Pimpri-Chinchwad are also popular and lucrative choices. Among NRIs looking to make luxury residential investments in Pune, localities like Koregaon Park and Salisbury Park are popular.

Rules and regulations for NRI investments

If you’re an NRI looking to invest in Pune, here are some important rules and regulations to keep in mind.

• As per the Foreign Exchange Management Act (FEMA), an NRI can invest in both residential and commercial properties in India. However, any agricultural land, farmhouse and plantation property can only be owned if it is acquired by way of inheritance or is gifted.

• The payment for purchase can be made out of funds remitted to India through a regular banking channel or through funds held in NRE/ FCNR (B)/NRO account maintained in India. Payments made outside of India are not allowed.

• 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 purchase 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.

With policy changes like RERA and GST in place, purchasing property in India has become significantly more comfortable, profitable and transparent. It is an excellent time for NRIs to explore the lucrative housing market in cities like Pune.

This article is contributed by Gunjan Goel, Director, Media & Marketing Communications, Goel Ganga Developments.

The views expressed here are solely those of the author and do not necessarily represent or reflect the views of RoofandFloor.

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