RBI Policy to Boost Property Market in India

RBI-indiaNew Delhi: There had been a typical trend among the rich Indians to set aside at least Rs 10-15 crore each year to invest in properties abroad. According to real estate consultants Knight Frank, most properties were bought in Malaysia, Singapore, Dubai and the suburbs of London. The interest in foreign properties had been so much so that in 2012, 2% of all new residential buildings in London were occupied by residents of India.During a time when the rupee is taking a nose dive beyond all imagination, the RBI has stepped in to curb this tendency of foreign investment and protect the rupee. To moderate the capital outflow the RBI has announced that Indian residents cannot invest in foreign properties anymore under the Liberalized Remittance Scheme (LRS). According to the scheme individuals could invest abroad with the initial limit of $ 200,000. Now to curb the outflow of investment the remittance limit has been lowered to $ 75,000. As a result investors have already started to think about changing their investment policies and are inquiring into the Indian real estate.Indian overseas buyer trends shows that Indians spent 65% on investments, 33% on education and about 5% on a second home. Investment in the oversea market is lucrative as it has a rental yield of 5-7% as compared to the 1-3% in India.Samir Jasuja, Founder And Chief Executive of real estate research firm PropEquity, said, “The major impact of this policy change could largely be realized in three main asset classes within real estate—serviced apartments, retail and semi-luxury residential in tier I cities. The market for all these segments has been subdued for a while and this could be a positive trigger.”This in turn will give a boost to the luxury and premium housing segment in India. Investors will be looking to invest in properties in places that have a higher rental yield. In this case Bangalore, Chennai and Hyderabad will be preferred over Delhi or Mumbai. The rental yield in Delhi is 2% while that in Hyderabad is 4%. It is also expected that investment in commercial projects will be higher than that in residential properties as commercial assets have comparatively higher rental yield.займ на карту без отказов круглосуточновзять кредит онлайн

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