Those who were looking to diversify their real estate portfolio by buying property abroad can do it now.
The Reserve Bank of India (RBI) has allowed Indians to buy properties abroad under the Liberalised Remittances Scheme (LRS) facility. Last year, the RBI had barred residents from buying immovable properties abroad in order to support the depreciating rupee. But as the rupee has stabilised and the foreign exchange reserves have expanded, it has withdrawn the ban.
But the purchases of real estate can be done only under the overall limit of LRS. Under the LRS facility, all resident individuals, including minors, are allowed to freely remit up to $125,000 every financial year for any permissible current or capital account transaction or a combination of both.
The falling rupee led the RBI to reduce the limit from $200,000 to $75,000 last year, but as the currency stabilised a little, the limit was increased to $125,000 in June this year. "This relaxation will encourage Indians to remit more money outside the country. The income thus earned will then find its way back into the India's economy," says Promoth Manghat, V-P, Global Operations, UAE Exchange LLC.