Permanent residency to foreign investors good for home sales in long run: Colliers

NEW DELHI: Government's move to grant permanent residency for 10 years to foreign investors will help in reviving home sales in the long run, according to property consultantancy Colliers International.

"As the policy allows the PRS holders to buy residential property for dwelling purposes, it will increase the end-user base and add an opportunity for residential market which is underperforming for quite a long time," says Sumit Jain, national director, residential services, Colliers International.

The Union Cabinet last month decided to grant 10-year residency status to foreigners, except Pakistani and Chinese citizens, if they invest Rs 10 crore over 18 months or Rs 25 crore over three years.

This can be extended for another 10 years if the visitor does not receive adverse notice. No registration requirements would be mandated.

Permanent residency status (PRS) holders will also be allowed to purchase one residential property for dwelling purpose. Also their spouses and children would also be allowed to work or study in India.

"Providing permanent residency to investors in India is a laudable footstep, however, a few more steps in addition to allowing foreign ownership, with certain minimum investment limit or condition, may promote the residential sector in India in a big way," the consultancy said.

Through this move, India joins countries like Hong Kong, Singapore Dubai, the UK and Australia which allow foreign property investment, with of course certain limitations.