What forms of real estate investment can foreign nationals and companies invest in?
Investments in real estate may be direct as well as through purchase of shares/debentures of companies engaged in the business of real estate. NRI’s and OCB’s are permitted to invest in residential property in India; however, it must be for bona fide use. The property may be rented out if it is not immediately required for the purchaser’s own residential use. NRI’s (and OCB’s) are also permitted to invest up to 100% in a new issue of equity shares or convertible debentures of Indian companies engaged in the following areas: (i) Development of serviced plots and construction of built up residential premises; (ii) Real estate covering construction of residential and commercial premises including business centers and offices; (iii) Development of townships; (iv) City and region level urban infrastructure including roads an bridges; (v) Manufacturing of building materials; (vi) Financing of housing developments. By its notification (No. FERA 133/93 date April 26 1993), the RBI has granted
