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India's Economic Growth: Opportunities in Real Estate and Infrastructure

Explore India's economic growth and thriving middle class alongside challenges such as infrastructure issues and urbanization. Learn about the influences of the monsoon season on agriculture and the economy, and discover key foreign direct investment (FDI) sources with major sectors like services and telecommunications. This guide also provides insights into the real estate market, including laws affecting property ownership, transaction costs, and the role of the Indian diaspora in investment. Navigate India's unique business etiquette for successful interactions.

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India's Economic Growth: Opportunities in Real Estate and Infrastructure

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  1. 6. A Look at India Page 105

  2. Geography Page 106

  3. Economic Growth—surpassing China? • Growing Middle Class • Homeownership—86% • Subsidies and Rising Commodity Prices • Infrastructure issues • Spreading urbanization, crowded cities Modern India Page 107-110

  4. Torrential downpours • 80% of the annual rainfall • June to August • Beneficial monsoon season bolsters the economy Monsoon Season Page 109

  5. FDI Top FDI Investors in India • Singapore • Japan • United States • United Kingdom • Netherlands • Cyprus* • Germany • France • UAE* Top Sectors for FDI • 20%–Services • 8%–Telecommunications • 7%–Computer hardware and software • 7%–Construction • 7%–Housing and real estate Page 111

  6. Your Next Client? • United States: 2.2 million • Canada: 1 million • U.K.: 1.5 million • S. Africa: 1.2 million • Malaysia: 2 million • Saudi Arabia: 1.7 million • UAE: 1.7 million India Diaspora Page 112

  7. NRIs and PIOs • Non-Resident Indian (NRI) • Person of Indian Origin (PIO) • Overseas Citizen of India (OCI) • Prime source of investment in real estate • Government encourages ties and long term investment • NRI Colonies--full-amenity communities Page 112-113

  8. Diaspora pulls Indians abroad • Career opportunities • Family ties • Immigration • Real estate business potential Why Is This Important? Page 113

  9. Bank Accounts Page 114

  10. Buying Real Estate in India • Indian property law • Maintain real property ownership by resident citizens • Quell speculation • Limit ownership to Indian citizens, those with family ties • No ownership of agricultural land, plantation property, or a farm house Page 114

  11. Crore and Lakh 1 Crore = 10 Million 1 Lakh =100,000 Page 115

  12. Transaction Costs • Stamp Tax • Registration Fee • Capital gains tax • Real estate agent fees • Registration • Property tax Page 115-116

  13. Foreign Ownership? Foreign residents of Non-Indian Origin Non-residents of non-Indian origin No purchase allowed May rent a residential property Maximum 5-year lease • May purchase a residence • Prior-year’s stay of 182 days required plus proof of intent to reside in India indefinitely Page 116

  14. Commercial Real Estate • Foreign corporations need Reserve Bank of India approval to buy or sell real property • Trend toward outlying business park development • Residential development funded with foreign capital requires25 acres of land • Commercial properties minimum 50,000m2 Page 117

  15. Rental Property • Rent-control laws skew rental markets • Apply to leases of 12 months or more • 11-month leases common • Serviced apartments provide short term housing for staff of foreign companies Page 117

  16. Real Estate Professionals • States regulate real estate practice • No licensing • Informal channels-homemakers, friends and relatives, kiosk owners, and janitors • National Association of Realtors–India striving for professionalism nationwide MLS Page 122-128

  17. Introductions • Women in Business • Business Cards • Conversation Starters • Meetings • Demeanor • Contracts and Negotiations • A Few Taboos • Social Etiquette Doing Business In IndiaBeyond the Basics Page 85

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