A Look at India

Report
ASIA/PACIFIC & INTERNATIONAL REAL ESTATE
6. A Look at India
Page 105
Slide 6-1
Geography
Page 106
Slide 6-2
Economic Growth—
surpassing China?
Growing Middle Class
Homeownership—86%
Subsidies and Rising
Commodity Prices
Infrastructure issues
Modern India
Page 107-110
Spreading urbanization,
crowded cities
Slide 6-3
 Torrential downpours
 80% of the annual
rainfall
 June to August
 Beneficial monsoon
season bolsters the
economy
Monsoon Season
Page 109
Slide 6-4
FDI
Top FDI Investors in India
1. Singapore
2. Japan
3. United States
4. United Kingdom
5. Netherlands
6. Cyprus*
7. Germany
8. France
9. UAE*
Page 111
Top Sectors for FDI
 20%–Services
 8%–Telecommunications
 7%–Computer hardware
and software
 7%–Construction
 7%–Housing and real
estate
Slide 6-5
Your Next Client?
United States: 2.2 million
Canada: 1 million
U.K.: 1.5 million
S. Africa: 1.2 million
Malaysia: 2 million
Saudi Arabia: 1.7 million
UAE: 1.7 million
India Diaspora
Page 112
Slide 6-6
NRIs and PIOs
Non-Resident Indian  Prime source of
investment in real
(NRI)
Person of Indian
Origin (PIO)
Overseas Citizen of
India (OCI)
Page 112-113
estate
 Government
encourages ties and
long term investment
 NRI Colonies--fullamenity communities
Slide 6-7
Diaspora pulls Indians
abroad
Career opportunities
Family ties
Immigration
Why Is This
Important?
Page 113
Real estate business
potential
Slide 6-8
Bank Accounts
Determines flow of funds for real estate transactions
Non-Resident Ordinary
Rupee Account (NRO)
 Annual repatriation
limit of US$1million
 RBI approval for
repatriation
Page 114
Non-Resident External
Account (NRE)
Foreign Currency NonResident Account
(FCNR)
 NRIs only
 NRIs only
 Funds must be from
abroad
 Foreign currency
from abroad
 Government
approval required to
withdraw funds for
real estate purchase
Slide 6-9
Buying Real Estate in India
Indian property law
 Maintain real property ownership by resident
citizens
 Quell speculation
Limit ownership to Indian citizens, those with
family ties
No ownership of agricultural land, plantation
property, or a farm house
Page 114
Slide 6-10
Crore and Lakh
1 Crore
= 10 Million
1 Lakh =
100,000
Page 115
Slide 6-11
Transaction Costs
Stamp Tax
Registration Fee
Capital gains tax
Real estate agent fees
Registration
Property tax
Page 115-116
Slide 6-12
Foreign Ownership?
Foreign residents of NonIndian Origin
Non-residents of nonIndian origin
 May purchase a
residence
 Prior-year’s stay of 182
days required plus
proof of intent to
reside in India
indefinitely
 No purchase allowed
Page 116
 May rent a residential
property
 Maximum 5-year lease
Slide 6-13
Commercial Real Estate
Foreign corporations need Reserve Bank of
India approval to buy or sell real property
Trend toward outlying business park
development
Residential development funded with foreign
capital requires25 acres of land
Commercial properties minimum 50,000m2
Page 117
Slide 6-14
Rental Property
Rent-control laws skew rental markets
Apply to leases of 12 months or more
11-month leases common
Serviced apartments provide short term
housing for staff of foreign companies
Page 117
Slide 6-15
Real Estate Professionals
States regulate real estate practice
No licensing
Informal channels-homemakers, friends and
relatives, kiosk owners, and janitors
National Association of
Realtors–India
striving for professionalism
nationwide MLS
Page 122-128
Slide 6-16
Doing Business In
India
Beyond the Basics
Page 85
Introductions
Women in Business
Business Cards
Conversation Starters
Meetings
Demeanor
Contracts and Negotiations
A Few Taboos
Social Etiquette
Slide 6-17

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