Real Estate Investment – An Informative Strategy on Indian Estate Law

What is real estate? How does it differ from agricultural property? Why are urban real estate and agricultural land governed by different laws in India? Did you know that the declared value of the property is 20-25% of the market value in India? This is to avoid heavy taxation on purchase/sale of real estate in India. However, real estate has proved to be the best investment in India. Real lands in cities and agricultural lands are governed by different laws and converting agricultural lands to real lands is a long process. Investing in property for rent is considered a bad investment. Rent laws are pro-tenant and it is not easy to get a rent increase despite inflation. However, ownership has proven to be the best investment in India.
Property investment has a different meaning under Indian law. What is real estate in India? Real estate is a commercial property located in the local plan in cities managed by the municipal board, the floor below it, and all buildings or structures. There are also other areas managed by agricultural or forestry activities. The property may include industrial and/or residential properties, and is generally owned by the registered person or company.
Agricultural or forest lands are governed by different laws. Generally, the village lands including the house are not considered as real estate in India and all properties built or under construction in cities are considered as immovable property in India. The property is leased and the law favors the tenant. It is not easy to vacate a property without the tenant’s permission or to get a rent increase. Therefore, investing in property is a loss.
Why is real estate proven to be the best investment in India? Although much debated and trading is limited to rent, the value of any investment in real estate is that demand always exceeds supply. The limited supply of land in India and the investment covers the inflation. India is a country with a population of 1.2 billion and its population is increasing by 20 million people every year. As a result, demand for property is increasing, especially in cities. Again India continues to experience inflation and the real asset is not affected by it. More than 80% of the population lives in villages and only 20% live in cities, which are considered real assets. As India is a developing country, the rural population continues to migrate to the cities. This makes the supply of real estate in India very limited.
A major cost factor for setting up an industry or office in India is the property purchased, either directly or on rent. If you want to get a sure return on investment in India in the form of satisfaction, it is best to invest in properties that are under construction in the near future. Another option is to invest in a farm near the city that should be converted into real estate in the near future. This farm can be rented for a quick return on investment real estate.
Here, the right to information must be ensured before proceeding with investments in real estate investment.

1. Check the property ownership documents to the official registration authority.
2. Check the ownership documents to confirm that he is not a tenant.
3. Make sure that the property is not purchased through government procurement of essential services and make sure that they are not in court dispute.
4. After registering the purchase with the registration authority for the transfer registered in your favor in the records of the Municipal Committee.
5. Before choosing a city to buy property, make sure you or your company is qualified to do so. An Indian citizen is not allowed to buy real estate in any state of India. In some cases, individuals or countries owning other companies are not allowed to buy property in India.

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