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If you are looking for 20-30% annual return, we have suitable opportunities available in our network. Minimum Rs 25 lakh, Maximum Rs 25 cr. Open to all investors, including NRI and Foreign Nationals. For more details, please contact us.

NRI Investment Through ETFs or ADRs in Indian Real Estate

Question by Mr. Narendran: We are Bangalore based real estate company and we are inviting foreign individual investors/institutes to invest in our residential projects across India. We are basically a marketing company and we have now stepped into our own property development in India. Can NRI’s invest through ETFs or ADRs? Kindly comment.

Answer: Thanks for asking your question. Please see the following posts for relevant inputs:

RBI Guidelines for FDI and ECB in Indian Real Estate

How can USA residents invest in India Real Estate through ETFs/ADRs?

So, can NRI’s invest through ETFs or ADRs? The simple answer is Yes in most cases. You should double check that your specific “residential projects” don’t have any regulation constraint from either Central Govt (RBI) or State Govt (I believe some state govts have added clauses to Central govt rules). Since you are already operating in India, you would have a good understanding on these aspects.

One more point from our experience is that if you are looking to attract FDI from NRIs for Real Estate Projects in the form of ETFs/ADRs, then you should tie-up with a company that has existing relationships with NRI investors, so that your offering gains more credibility.

You can contact us if you want help in connect with such companies. Feel free to ask any other question.

Thanks,
Shankar on behalf of India-Real-Estate.org

Comments

Comment from sarashi
Time: November 24, 2009, 8:05 am

can u please provide with relevant RBI, notification/circular/guideline citation for FDI and ECB in real estate and also citation of applicable guildlines for NRI investment through ETFs or ADRs in Indian Real Estate.

Comment from TUSHAR
Time: November 30, 2011, 10:14 am

Dear Sir,
1)My brother staying in Japan ( NRI) wanted to invest in India on Land ( real estate ) around 2 crores. and he wanted to take that money back. Is there any locking period./ restriction for repatriation.
2) he wanted to bring Japanese people investment to India on land ( 10 crores) What is the right procedure to bring money and to be send it back to Japan after 3 years.

regards
Tushar

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