A Look at India
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Transcript A Look at India
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