Slide 6-1 ASIA/PACIFIC & INTERNATIONAL REAL ESTATE 6. A Look at India Page 105

Slide 6-2 Geography Page 106

Slide 6-3 Modern India Economic Growth— surpassing China? Growing Middle Class Homeownership—86% Subsidies and Rising Commodity Prices Infrastructure issues Spreading urbanization, crowded cities Page

Slide 6-4 Monsoon Season Torrential downpours 80% of the annual rainfall June to August Beneficial monsoon season bolsters the economy Page 109

Slide 6-5 FDI Top FDI Investors in India 1.Singapore 2.Japan 3.United States 4.United Kingdom 5.Netherlands 6.Cyprus* 7.Germany 8.France 9.UAE* Top Sectors for FDI 20%–Services 8%–Telecommunications 7%–Computer hardware and software 7%–Construction 7%–Housing and real estate Page 111

Slide 6-6 India Diaspora Your Next Client? United States: 2.2 million Canada: 1 million U.K.: 1.5 million S. Africa: 1.2 million Malaysia: 2 million Saudi Arabia: 1.7 million UAE: 1.7 million Page 112

Slide 6-7 NRIs and PIOs Non-Resident Indian (NRI) Person of Indian Origin (PIO) Overseas Citizen of India (OCI) Prime source of investment in real estate Government encourages ties and long term investment NRI Colonies--full- amenity communities Page

Slide 6-8 Why Is This Important? Diaspora pulls Indians abroad Career opportunities Family ties Immigration Real estate business potential Page 113

Slide 6-9 Bank Accounts Page 114 Determines flow of funds for real estate transactions Non-Resident Ordinary Rupee Account (NRO ) Non-Resident External Account (NRE) Foreign Currency Non- Resident Account (FCNR) Annual repatriation limit of US$1million RBI approval for repatriation NRIs only Funds must be from abroad Government approval required to withdraw funds for real estate purchase NRIs only Foreign currency from abroad

Slide 6-10 Buying Real Estate in India Indian property law  Maintain real property ownership by resident citizens  Quell speculation Limit ownership to Indian citizens, those with family ties No ownership of agricultural land, plantation property, or a farm house Page 114

Slide 6-11 Crore and Lakh Page Crore = 10 Million 1 Lakh = 100,000

Slide 6-12 Transaction Costs Stamp Tax Registration Fee Capital gains tax Real estate agent fees Registration Property tax Page

Slide 6-13 Foreign Ownership? May purchase a residence Prior-year’s stay of 182 days required plus proof of intent to reside in India indefinitely Foreign residents of Non- Indian Origin Non-residents of non- Indian origin No purchase allowed May rent a residential property Maximum 5-year lease Page 116

Slide 6-14 Commercial Real Estate Foreign corporations need Reserve Bank of India approval to buy or sell real property Trend toward outlying business park development Residential development funded with foreign capital requires25 acres of land Commercial properties minimum 50,000m 2 Page 117

Slide 6-15 Rental Property Rent-control laws skew rental markets Apply to leases of 12 months or more 11-month leases common Serviced apartments provide short term housing for staff of foreign companies Page 117

Slide 6-16 Real Estate Professionals States regulate of real estate practice No licensing Informal channels-homemakers, friends and relatives, kiosk owners, and janitors National Association of Realtors–India striving for professionalism nationwide MLS Page

Slide 6-17 Doing Business In India Beyond the Basics Introductions Women in Business Business Cards Conversation Starters Meetings Demeanor Contracts and Negotiations A Few Taboos Social Etiquette Page 85