By Dr Sanjay Chaturvedi, LLB, PhD
When an Indian can buy property and real estate in Dubai, London, Sydney and many other part of the world why cant the world buy real estate in India. Indian real estate should be open to the people who wants to buy real estate in India. The only fear was that it will be open for speculations and trading. FEMA very specifically provided for ban of real estate trading for all out bound investments, similarly it can also put a restriction on real estate trading by foreigners. We already have FDI norms in place. We can have similar restrictions. A restricted repatriation norms and automated approval for long term investment should be allowed from foreigners.
People come to India on deputation, for employments and for travel. Although India has already open its real estate to NRIS and Overseas Citizenship of India (OCIs). Even spouse of an OCI now allowed to purchase properties in India. India is having huge potential to earn foreign exchange if Indian Real Estate is opened to the world.
Only fear is that real estate prices will shoot upward when new buyers will flood in, can be curbed with certain restriction and in certain segments. A foreigner may buy in Office Spaces, Warehouses, Factories, Resorts and Hotels. Even residential real estate in some two tier and three teir cities may be offered or new townships and SEZs.
Opening up Indian Real Estate to the world will certainly boost Indian Real Estate and a huge wealth creation for the nation will be done. A owner will visit his property and will bring more revenue for travel industry, FMCG. Indian tourism, medical tourism, Indian Art and Culture and there will opening for entire economy.
If we can allow Indians to purchase property in the world where the Foreign Exchange is going out of the country, why cant we allow forign nationals to invest in Indian property and receive huge foreign exchange?
