An American man's provocative post has stirred a storm online, drawing sharp attention to India's real estate and the sliding rupee. Proclaiming plans to exploit currency disparities, he outlined a business idea: purchasing entire neighborhoods in India and tripling rents, calling it a surefire profit-making venture.
Dismissing the plight of potential tenants, he remarked, "I'll become an Indian slumlord and profit off their misery."
When asked how he’d deal with rent defaulters, his response was even more jarring: “Sell the tenants to Saudis.”
In a subsequent exchange, he brushed off concerns about Indians potentially defaulting on rent, adding, "I'll throw them out. Who cares?"
The post is set against the backdrop of India’s struggling economy and currency. As of December 27, India’s foreign exchange reserves hit an eight-month low of $640.28 billion, marking the fourth consecutive weekly decline.
In total, reserves have dropped by $17.8 billion in just four weeks, according to the Reserve Bank of India (RBI). The central bank’s efforts to curb rupee volatility have included significant dollar sales via state-run banks, further depleting reserves.
The rupee’s persistent slide mirrors broader economic challenges. The domestic currency sank to an all-time low of 85.8075 against the U.S. dollar last week, continuing its ninth straight week of depreciation. Factors such as a widened trade deficit, slowing growth, and the U.S. Federal Reserve’s hawkish stance have compounded the decline.
Can foreigners buy property in India?
India’s property laws do permit foreigners, including Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs), to own real estate under certain conditions. While direct ownership of agricultural land, plantations, or farmhouses is restricted, residential and commercial properties remain fair game, offering lucrative opportunities for speculative investments.
However, acquiring property as a foreign national in India is no straightforward affair. Restrictions tied to the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India’s approval processes aim to regulate foreign investments in real estate, particularly for citizens from certain restricted countries.