India has made it illegal to buy property in other countries.

 

India has made it illegal for its citizens to send money out of the country to buy property elsewhere, a development that could have a global impact on real estate markets.

The Reserve Bank of India (RBI), the country's central bank, revealed regulations this month that bar many Indian citizens from investing in overseas property as part of a wave of steps aimed at reducing foreign exchange outflows. properties in qatar

In recent weeks, the Indian rupee has plummeted to new lows against the dollar, prompting the government to take a series of measures to shore up the currency. The Reserve Bank of India (RBI) announced on August 14 that it was reducing the sum that Indian residents could send abroad from $200,000 to $75,000 per year, and that this money could not be used for "acquisition of immovable property, directly or indirectly, outside India."

"Many Indians chose to diversify and increase their exposure to international real estate to ensure steady rental revenue streams for their families abroad, and/or to provide accommodation for their own use during their foreign sojourn," said Om Ahuja, Jones Lang LaSalle India's chief executive of residential services. "These investors' foreign property focus is now going to be significantly reduced."

In recent years, Indians have made significant investments in foreign real estate. According to National Association of Realtors report, they were among the top five buyers of property in the United States by country of origin from the beginning of the year until the end of March.

According to the NAR survey, detached single-family homes accounted for 90% of registered sales, while commercial properties and land accounted for 7%. The average cost of a home for an Indian resident was $300,000. Approximately 21% of the recorded transactions were made entirely with cash.

However, it is unknown how many of these buyers used funds from India to purchase land.

According to data from the Dubai Land Department, Indians were the largest property buyers in Dubai in the first half of the year, investing more than Dh8 billion on 499 transactions.

Mr Ahuja said, "This became particularly viable with the liberalized remittance scheme (LRS) that was rolled out a few years ago." "The result was significant sales outflows to places like the Middle East, London, and Singapore. The latest policy reform aimed at limiting foreign real estate investment, on the other hand, represents a sharp departure from the LRS system."

However, the new regulations could help India's real estate market.

"We will see more capital chasing attractive assets that give good returns within the country in an environment where foreign real estate is no longer a choice," Mr Ahuja said. "In India, there will be a greater emphasis on lucrative residential real estate investment opportunities. When it comes to protection, returns, and development, Indian investors still believe that real estate is the best investment asset class."

According to JLL, Hyderabad, Bangalore, Chennai, and Pune are among the cities in India that offer interesting investment opportunities.

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