Buying real estate in New Delhi
Once you have settled in New Delhi, particularly if you are planning to stay here long-term, you can consider buying your own property. Though, keep in mind that buying a property in New Delhi is a rather complicated affair and hiring a professional lawyer to help with the technicalities is a good idea. It is also important to note that you must possess a resident permit of India before you can buy a property here.
Legal requirements for buying property in New Delhi
According to Indian law, a person who is not of Indian origin with residence outside India cannot purchase any immovable property in the country. Additionally, a foreign national must show that they have stayed in the country no less than 183 days in a single financial year to be considered a resident. Hence, no foreigner with a tourist visa(which lasts 180 days) can buy a property here. Also, a non-resident Indian (NRI) or a foreign national of Indian origin (PIO) cannot buy a property jointly with a non-eligible foreigner.
Finding a property in New Delhi
You can search for property listings online or in the local newspapers. Using a real estate agent is also a very good choice, especially if you are new in Delhi. A few good websites to go through property listings are magic bricks and 99acres. You can also try searching on OLX and Quikr.
Budget requirements
The property rates in New Delhi have steadily been increasing with time which makes it a hot location for property buyers. The price for a villa in well-developed neighbourhoods like Greater Kailash may go as high as 25 crore Indian Rupees (US$ 3,525,620)or higher. There are also cheaper areas like Uttam Nagar where you might get an apartment for an average price of 15 lakh rupees (US$21 153,72). Purchase of a property in New Delhi will also involve other fees like notary fees, lawyer's fees, registration fees, taxes etc. The stamp duty payable on a property is 4% to 6% in New Delhi. The standard rate for registration fees is equivalent to 1% of the property's value, depending on its location. Finally, legal fees generally apply at around 1.5% of the property price.
Procedure for buying a property in New Delhi
First, you must obtain a resident permit if you have been in India for more than 183 days during a financial year. You can request a permit from the nearest immigration office which will be sent to your residential address. Once you have the permit, you must apply for a special authorisation from the Reserve Bank of India for the purchase of a property. The whole process may take some time, but once you are done, you will enjoy all the rights of an Indian resident, including the purchase of a property.
After deciding on the property of your choice and finalising the sale price, you must sign a sale agreement with the property owner. For this, you will have to hire a state attorney to draw up an agreement which will clearly specify the terms and conditions of the purchase. Once the agreement is signed, you might be required to pay some percent of the total sale amount as deposit. The process of registering the property can be completed in around 40 days.
Final closing tips if you are buying a property in New Delhi
Firstly, hire reliable professionals (lawyer, notary and real estate agent) who will guide you through all the steps in the process. Also, translate every legal document into your native language for complete understanding. Lastly, make sure that the property is legally authorised for your particular requirements before buying.
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