Hong kong and macau added to restricted indian property list

The Reserve Bank of India has added Hong Kong and Macau to its growing list of restricted countries for property investment.

The two nations join countries such as Sri Lanka, Afghanistan and Iran, whose citizens need prior permission from the RBI before acquiring or transferring immovable property in India.

"The primary goal of RBI is to have control on the capital movement coming into and going out of India," explains Shobhit Agarwal, Managing Director – Capital Markets, JLL India. "Real estate has always been a sector which can consume a sizable sum. There is a probability that the funds, thus coming into the country, might get used for unwarranted purposes. Considering the current geopolitical scenario, the move is proactive and apt."

The rule does not apply to Indian citizens resident outside India who can acquire or transfer any immovable property other than agricultural or plantation property or farm house. In case of transfer, the transferee needs to be either a citizen of India or person of Indian origin resident outside India.