Bangalore Real Estate: New Investment Plans for NRIs
Feb28

Bangalore Real Estate: New Investment Plans for NRIs

Non-Resident Indians (NRIs) have been attracted to the Indian real estate for many years now. Mainly because the Realty prices in the country are much more affordable as compared to other places on the globe. Furthermore, to propagate Foreign Direct Investment (FDI) the Indian government has launched many attractive schemes to attract NRIs to the Real Estate market. Subsequently, the Realty industry has never failed to attract the attention of the NRIs. Even the Reserve Bank of India (RBI) has given special permission to NRIs holding an Indian passport to invest in the residential and commercial properties in India. This has opened a new avenue and hope for the Indian real estate. It is only fair to say that the NRI contribution has boomed the Indian real estate sector in multi-folds within a short time span. What is Making Bangalore a Lucrative Deal for NRIs? Immovable properties except farmlands or plantation estates are available to NRIs for purchase. An NRI can acquire any such property by gift from an Indian resident, even if the owner of the land resides outside India. An NRI can also obtain a property by the virtue of inheritance. The NRI can even transfer his property to any person living abroad, residing in India, or is a person of Indian origin. These are just a few investments options that an NRI can make when purchasing a good property deal in the Bangalore Real Estate. With the value of rupee is depreciating globally, and the return on the real estate investment is huge, today more and more NRIs are grabbing a large chunk of Indian Realty sector. Moreover, with lenient rules and regulation from RBI on real estate investment by the NRIs, it has opened new and green pastures for NRIs to dig in. The government is also taking steps to ensure better handling of property deals and investment growth activities via their promotional investment council for the NRIs to put their money safely in this sector. Aggressive growth of Bangalore Real Estate due to NRIs NRIs have taken a great interest in Bangalore’s Realty sector. The “Garden City” has always been an eco-friendly and Smart City for real estate investment, however with the escalating interest of NRIs in these past few years, it has gone up to a different level. The residential sector has been booming with unique plans and designs which have been aggressively accepted by the NRIs. The need for open, green spaces, lavish living quarters and opulent lifestyle has enhanced the interests of NRIs in Bangalore. No wonder the premium residential projects have many NRI buyers. The speed at which these premium...

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REIT Has The Potential To Change The Real Estate Sector In 2015
Feb25

REIT Has The Potential To Change The Real Estate Sector In 2015

With the new government at the center passing the bill for Real Estate Investment Trust (REITs), the Indian commercial real estate will be the next big thing in 2015. As the Realty sector has been reeling under an acute shortage of funds, this proposal will give a much-needed boost to the sector. Real Estate sector is among the fastest growing industries in India. The market size of this sector is expected to grow to Rs. 3,000 crores in the next 5 years. The growth rate is already moving upwards, with major cities recording 40% sales in the last quarter of 2014. The demand for office spaces in the major cities (Delhi, Bangalore, Mumbai, Pune, Gurgaon, NOIDA) has been all time high in 2014. The figures are simply staggering, with 58% increase in their demand and supply in just one year. The demand in the housing sector has also increased by 43% in the major cities. The residential sector has a tremendous potential for growth due to the increasing demand of residential units for a rapidly budding urban population. In the coming years it is anticipated that the urban population will grow up to 600 million people will live in the cities. Indian Real Estate is highly favorable for global investment because of the rising demands for development. The demand for space has created a massive opportunity in the Indian Realty sector. What is a REIT? Real Estate Investment Trust (REIT) operates like a mutual fund trust which generates income from residential and commercial buildings. Investors are driven to invest in an Infrastructural project that gives them a high return on their investments, which is tax exempted. The profits paid to the investors and shareholders are in the form of Dividends, which is tax-free. Anyone can purchase stock like they would in other industries. Investment is direct and easy with the REIT. The shareholders earn a steady income from the share they own and it’s not necessary to own the property to make profits. There are two types of REIT’s Equity REIT Mortgage REIT The Equity Real Estate Investment Trust generates incomes based on the rent, while the Mortgage REIT earns from long term mortgages, both residential and commercial. REIT Advantages: A Realtor can buy, develop and sell the properties while managing the property. REIT invites investors for professionally managed properties, anticipated to numerous advantages over the conventional methods. There are many Advantages to REIT’s as compared to the traditional method of investment. REIT’s in India will be very stable and offer uniform returns to the investors, because; No autocracy involved and the process will be administered by the professionals...

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India Needs Real Estate Investment Trusts
Aug18

India Needs Real Estate Investment Trusts

Real estate sector in India is presently undergoing an exciting phase where new trends and policies are being considered with an increased frequency. It is like a brave new foray for this industry, which has been suffering from disarray and stagnation since a long time. Originally, an unorganized sector, today it is undergoing a major transformation to develop in a more organized industry in the coming times. So what has changed suddenly necessitating such alterations? Some of the probable reasons may be,     Entry of global players     Foreign investments     Involvement of corporate houses During the past decade, a phenomenal growth is evident in the construction industry due to the rising income levels of consumers, rapid urbanization, and Foreign Direct Investments (FDI). Ever since the country opened its doors to FDI in 2005, reforms related to the Real Estate industry started gaining pace. Reforms have been sweeping across all aspects of this industry including,     Land acquisition     Customer interest     Industry regulations In the coming times, further liberation of policies related to FDI is being sought. Also in the offing is the introduction of the sorely needed Real Estate Investment Trust (REIT). What is REIT? REIT refers to a company that owns and operates profit generating real estate assets. Securities and Exchange Board of India (SEBI) has been contemplating this novel mechanism of investment for some time now. REITs generally own all kinds of commercial properties ranging from shopping centers, apartments, offices, hotels, hospitals, and warehouses. According to the World Bank, REIT refers to the security purchased by an investor for real estate investments. SEBI has finally broken its silence on the matter of approving REITs in India, after seven years. The regulatory body has finally cleared way for the investment property-backed vehicles to go for local exchange listings this month. By all indications, the rules seem quite relaxed with the main features being,     Green signal to investor selling & pooling of properties worth Rs. 5 billion ($82M)     Initial public offer needs to be at least ½  half of that size     Go ahead for Infrastructure Investment Trusts (InvITs) Infrastructure Investment Trusts will allow developers monetize infrastructure assets via listing on stock exchange. With approval for InvITs, investors now have the independence to own toll road tracks or data undersea cables directly. Crucial aspects based on SEBI guidelines A.    Eligibility Criteria Setup of real estate investments trust with trust deeds registered under 1908 Registration Act provisions. Involved parties include principal value, trustee, manager, and sponsor. The trustee will hold assets under REIT for investors benefit. To ensure a professional management, the manager should have a...

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