Rules restricting the ability of people of Indian origin (PIOs) to buy property could be significantly relaxed, prompting hope for the domestic real estate market.
The Economic Times reports the Indian government plans to allow PIOs to purchase domestic property without having to first get approval from the Reserve Bank of India (RBI).
PIO buyers will also not have to produce a valid visa before buying real estate, the paper adds.
The Economic Times has also reported non-residents whose mothers or grandmothers lived in India will also be allowed to buy property.
Currently only those whose fathers or grandfathers were Indian citizens can purchase real estate.
If rubber stamped, the changes will bring a helping hand to real estate sellers at a time when the Indian market is seeing a fall in transactions involving domestic buyers.
The Times says POIs living in a list of countries which includes the likes if Sri Lanka, China and Afghanistan may be allowed to buy property without an “RBI nod”.
Last month Hindu Business Line said Indian nationals who have moved abroad were helping the domestic property market by upping their interest in real estate in recent months.
Non-resident Indians, or NRIs, have invested in 10 to 12 per cent more deals, according to the publication.