About India

Living There

The experience of living in India is as varied as the country itself. Lifestyles and attitudes change depending upon where you stay. If you enjoy life in the fast lane, northern India would be your ideal retreat. It has, over the years, incorporated global cultures into its own, making it the most cosmopolitan region in India. 

However, if you’re one of those souls who love to stop and stare, then the South is where you should be heading. Life here is much slower and displays a wonderful balance of tradition and modernity, making it a fascinating place to stay. The nation has four seasons: winter (January and February), summer (March to May), a monsoon (rainy) season (June to September), and a post-monsoon period (October to December).

Economy

The economy has never looked so good before, with steady and significant growth recorded over the last decade. With countries like the United States, those within the European Union, and the United Arab Emirates looking up to India for various export commodities, the future only looks bright and buoyant.

While issues such as over-population are grave concerns, the economy is using its vast human resources to quicken development.

Politics

The largest democracy in the world, the political system is headed by the Prime Minister and his cabinet of ministers who are designated specific portfolios such as information and communication and railways. However, each state in the country has its own elected government, led by a Chief Minister. The political system also hosts a President who appoints the Prime Minister, but has no discretion in the running of the government.

Buying Guide & Process

The Government has few restrictions on foreign nationals of non-Indian origin buying property in India, although it supports them if they stay in the country for 183 days in a year. Once the property has been selected, the buyer pays 10 to 20% of the purchase price as a deposit. Upon this payment, the title documents are obtained from the seller. Once the remaining payments are made, the registration of the deed takes place. The stamp duty for the registration process varies with the location of property and can take up to 67 days for completion.

Investment Facts and Guide

BOOM – That’s the state of the current Indian real estate market. Supportive government regulations, large population size, and global investment in the real estate sector have contributed to a 24.2% increase in property prices. Cities such as Hyderabad, Pune, Chandigarh, and Chennai that are outsourcing centres for multinational giants are proving to be lucrative targets for investment.

Price per Square Foot

The real estate market in India is on fire. Studies suggest that the realty sector will grow at 30% per annum to reach to $45 to 50 billion by 2010 from the existing $12 billion.

By 2015, it is projected that the market size will grow to $90 billion. On this positive note, let’s take a look at the average price per square metre in 2 major Indian cities - Mumbai and Bangalore.

Mumbai – While residential property rates vary between INR 18,000 (US $450) and INR 45,000 (US $1,125), commercial properties sell at INR 17,000 (US $422) to 55,000 (US $1,367).

Lower-end properties are available in the suburbs and start at INR 2,500 (US $62) for a one bedroom apartment and can go up to INR 45,000 (US $1,119) for two bedroom apartments in the city or INR 2,800 (US $69) for commercial deeds.

Bangalore – Residential properties are priced anywhere between INR 1,200 (US $29) for a single bedroom and 5,500 (US $136) for a double bedroom apartment, while commercial units are valued at INR 2,000 (US $49) to 9,000 (US $223).

Rental Yields

Rental income varies from one area of investment to another. Rentals in New Delhi yield anything between 4 and 8.4%, while apartments in Mumbai offer 3.83%. Bangalore, with a huge concentration of IT companies and expat population, offers returns as high as 9.9%. These high percentages can be attributed to the Government’s decision to allow 100% foreign direct investment (FDI), affordable financing options, and rising disposable incomes.

Rental Income Tax

Rental Income Tax is levied in two ways. Firstly, non-residents earning rental income are taxed at progressive rates of 10, 20, and 30%. Secondly, residents of India are subject to tax on their worldwide income.

Capital Gains Tax

Long term capital gains are taxed either at 10% or 30% of earnings. Short term capital gains are taxed just as any other income and they can be written off against short term capital loss from the same business.