Real estate in Chennai

Your wish to get the keys for your dream house will become a bit more difficult now.


After ICICI bank, HDFC bank has also decided to hike the home loan rates by 50 bps by next week. HDFC Bank clarified that 1 per cent increase in rates will not impact any demand for housing loans. The bank is also expected to hike rates by 1st April.


“We have a unique situation now. It is the year-end for everyone and there is a liquidity crunch. But the government and the RBI have very clearly said that they are taking steps to improve liquidity in the system. If liquidity improves in the system and if more resources are available, then again one can bring rates down, says HDFC Chairman Deepak Parekh in an interview.

“The dynamics of floating interest rates is, it goes up and also comes down. So, I don't think that we can assume that rates will keep going up just because they have gone up once.”


SBI has increased its home loan rates by 50 to 75 bps. ICICI Bank had raised its floating reference rate by 50 basis point to 9.25 per cent.

To get a great property in India, you need to know the rules.

1.Which categories of persons can purchase immoveable property in India?

Only Non Resident Indians and Persons of Indian Origin are allowed to purchase immoveable property in India

2.What is the definition of Person of Indian origin?

PIO means an Individual who at any time held an Indian passport or who or whose parents or grand-parents were at any point citizens if India at any point in time. However citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan are not eligible to be called PIOs even if they satisfy the above conditions.

3.Is there any restriction on the type of property that can be purchased?

No. NRIs/PIOs can purchase both commercial and residential properties in India

4.How many properties can the NRIs/PIOs purchase?

There are no restrictions on the number of properties that can be purchased.

5.Do NRIs/PIOs have to file any declaration / take permission of the Reserve Bank of India for the purchase of immoveable property?

No. There is no declaration / return to be submitted to the submitted to the Reserve bank of India either before or after the purchase.

6.Can the NRI/PIO take a loan from an Indian bank in rupees for purchase of immoveable property in India?

Yes.

7.Can the NRI/PIO/foreign citizen of non-Indian origin purchase agricultural land, plantation or farm house in India

No.

8.Can the NRI/PIO give the property on rent ?

Yes. The rental income can be credited to the NRE/NRO Account and even remitted out of India.

9.Can foreign citizens of non-Indian origin purchase property in India?

No. foreign citizens i.e. individuals who are neither NRIs nor PIOs cannot purchase immoveable property in India.


10. Can foreign citizens of non-Indian origin take a property on lease in India?

Yes. The foreign citizens of non-India origin can take a property on lease without permission of the RBI if the least period does not exceed 5 years.

The real estate scenario is looking quite upbeat. Real estate consultants are forecasting rising rates and home owners are definitely a pleased bunch.

The stratospheric rise in real estate prices over the last year may compare closely with the stock market indices which are at their all-time highs. The analogy seems perfect given the difficulty involved in picking out stocks that could still yield good returns at these rarefied levels.

Real estate consultants have apprehensions of an escalation of prices, but unlike stock market players they say there are still some multi-bagger locations that may yield bumper returns to investors.

Then, of course, there are the momentum plays whose value has appreciated a great deal in the last few years. Here are a few samples -- suburban Chennai, Mumbai, Bangalore, Pune, Gurgaon and Hyderabad.


We asked real estate consultants to choose five best options in real estate to put your money in and suggest the best investment options for the following budgets -- Rs 10 lakh, Rs 25 lakh and Rs 50 lakh. They have chosen Chennai as the Southern superstar

The various projects announced will make Chennai an attractive destination. The software boom and the arrival of expats have enhanced real estate prices in a major way. The government is promoting the area between Tidel Park and Kelambakkam as a software corridor and the area connecting Sriperumbudur and Singaperumal Kovil as the Industrial Corrdior

As a result, real estate prices have doubled in these areas. Prices are going up in South Chennai because that is the most preferred locality among expats. Most companies feel that Chennai offers excellent manpower, particularly in the software industry, which compares better than that in Hyderabad and Bangalore