Investing in property in Noida and Greater Noida offers Non-Resident Indians (NRIs) a promising opportunity, given the region’s rapid infrastructure development, regulatory reforms, and robust real estate market.
This comprehensive guide provides accurate and up-to-date information to assist NRIs in making informed property investment decisions in these areas.
Legal Eligibility and Documentation
Who Can Buy Property
NRIs and Overseas Citizens of India (OCIs) are permitted to purchase residential and commercial properties in India. However, they are restricted from buying agricultural land, plantation property, or farmhouses.
Essential Documents
To facilitate a property purchase, NRIs must possess:
Valid Passport and OCI Card: Establishes identity and residency status.
Permanent Account Number (PAN) Card: Mandatory for financial transactions and tax purposes.
Proof of Address: Utility bills or an attested proof of residence from the Indian Embassy if residing abroad.
Passport-sized Photographs: Required for various documentation processes.
Power of Attorney (PoA): If not present in India, a registered PoA authorizing a representative to act on their behalf is necessary.
Payment Methods
NRIs can fund property purchases through:
Funds Remitted to India: Via normal banking channels.
NRE/NRO/FCNR Accounts: Utilizing Non-Resident External, Non-Resident Ordinary, or Foreign Currency Non-Resident accounts.
These methods ensure compliance with the Foreign Exchange Management Act (FEMA) regulations.
Home Loans
Indian financial institutions offer home loans to NRIs, disbursed in Indian Rupees, subject to Reserve Bank of India (RBI) regulations. Repayment must be made through NRE/NRO accounts.
Due Diligence and Verification
Before finalizing a property purchase, NRIs should:
Verify Title and Encumbrance: Ensure the property has a clear title and is free from legal disputes.
Check Land Use and Approvals: Confirm the land is designated for residential or commercial use and that all construction approvals are in place.
Obtain Occupancy Certificate (OC): Certifies that the building complies with approved plans and is safe for occupancy.
Ensure Tax Compliance: Verify that all property taxes and dues are up to date.
Regulatory Compliance
RERA Registration
The Real Estate (Regulation and Development) Act (RERA) mandates that all real estate projects be registered, ensuring transparency and protecting buyer interests. NRIs should verify the RERA registration of the project before investing.
Registration and Stamp Duty
Property registration involves paying stamp duty and registration fees, which vary by state. In Uttar Pradesh, stamp duty is approximately 7% for men and 6% for women. The sale deed must be registered with the local sub-registrar’s office to complete the legal transfer of ownership.
Prime Investment Location
Noida
Sector 150: Known for luxury housing developments, green spaces, and premium amenities.
Sector 137: Offers excellent connectivity via the Noida-Greater Noida Expressway and a dedicated metro station.
Sector 146: An emerging area with a mix of residential plots and apartments at attractive prices.
Sector 107: A well-developed sector with both luxury and mid-segment housing. Located close to the Noida-Greater Noida Expressway and surrounded by premium societies like Great Value Sharanam, Amrapali Heartbeat City, and Prateek Edifice, making it a balanced choice for both end-users and investors. The sector also has good social infrastructure including schools, clinics, and markets.
Sector 45: Centrally located and well-connected to Noida City Centre and Sector 18. Home to premium residential projects like Prateek Stylome, Amrapali Sapphire, and Gardenia Gateway. Sector 45 offers high rental demand due to proximity to commercial hubs and metro access.
Greater Noida
Ecotech Sectors: Industrial plots available for entrepreneurs seeking to establish industrial units.
Knowledge Park: A hub for educational institutions and IT companies, offering potential for rental income.
Infrastructure and Connectivity
Noida-Greater Noida Expressway: A 24.53 km six-lane expressway enhancing connectivity between Noida and Greater Noida.
Noida Metro (Aqua Line): A 29.7 km metro line with 21 stations, improving public transportation in the region.
Noida International Airport: Under construction in Jewar, expected to boost real estate values upon completion.
Wrap Up
Investing in property in Noida and Greater Noida presents NRIs with significant opportunities for capital appreciation and rental income. By adhering to legal requirements, conducting thorough due diligence, and leveraging professional property management services, NRIs can ensure a secure and profitable investment in India’s burgeoning real estate market.
