Prakrriti

Indian Rupee: relatively steady currency against the US Dollar which makes it a relatively comfortable currency to deal in when funds or remuneration are USD related. The Rupee is off 2 points from the first half of 2003 but sits in a median band of 47 and 45 to the US Dollar..

Economic climate: Recent government moves to rationalise property related legislation, supplemented by two initiatives which allow direct foreign investment and the setting up of real estate mutual funds are designed to encourage growth by external investment in the Indian real estate sector.

Capital Gains Tax: Capital gains arising on the transfer of a residential house, comprising buildings and related land, is exempted if the amount of capital gains is utilized in acquiring another residential house, either by purchase or by construction. In the case of sale only, the inflation index adjusted cost will be deducted and all Brokerage, legal fees and other expenses incurred in selling the property are allowable as a deduction from the taxable capital gains.

Popular Areas: A large proportion of the new developments are centred in and around Mumbai, Dehli, Bangalore, Trivandrum, and Cochi which by virtue of sheer availability and quality of housing projects makes them popular areas.

Price ranges: From under USD 100,000 rising to 1 million highly dependent on location. Real estate is inevitably more expensive in big cities like Mumbai and Dehli. All new developments command higher prices although the clarity of related legislation and associated purchase procedure offsets the price differential.

Budgetary guide: Apartments: USD 80,000 to 195,000. Condominium attached 3 bedroom 3 bathrooms: USD 250,000 to 415,000. Single Family Residence attached 3 bedrooms, 3 bathrooms: USD 290,000 to 420,000. Single Family Residence detached 3 to 4 bedrooms, 3 bathrooms: USD 365,000 to 470,000. Luxury houses USD 500,000 plus.

Overseas Investors: NRI´s holding an Indian passport do not require prior permission of Reserve Bank of India to buy residential. The RBI also permits NRI´s holding a foreign passport, to acquire, hold, transfer or dispose off by way of sale or inheritance, immovable properties situated in India as long as they are destined for residential use..Essentially there are no barriers to foreign ownership of property.

Service Fees: Stamp duty varies from state to state in India.The Stamp Office publishes a Ready Reckoner detailing rates The seller must execute the transfer of title to the buyer by registering it with the local sub-registrar of properties under whose jurisdiction the property is located. The Sub- Registrar will determine the market value of the property and the stamp duly. All sale deeds showing the value should be cleared by the Income Tax officer. Only then, will the Registrar register the property.

Mortgages: The leading home loan providers are HDFC Bank, ANZ Grindlay Bank, Citibank (Shelters), ICICI. However there are many Housing Finance Companies offering a range of mortgage products designed to suit the majority of client needs . Some loan packages are available at 7.75% per annum but there are major variations. Most HFC’s offer both fixed rate and adjustable rate (Variable) home loans to customers, normally over 10 to 15 years for NRI’s.