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Can An Nri Purchase Or Own A Property In India?

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By Author: Harman SBP
Total Articles: 65
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India is now a real estate investment hotspot and certainly not only citizens of India are seeking to get a lot for their future potential, but non-resident Indians are now willing to invest in commercial and residential real estate projects. Such investment comes with higher returns and a method of generating surplus investments.

Non-resident Indians (NRIs) are always seen as willing to purchase a property in India — whether it’s for a family residing back home, or because they want a getaway in India any time they visit, or simply because they want to stay and settle in India later in their lives.

Time could not have been greater for you to do so if you are a Non-Resident Indian (NRI) looking to purchase a property in India.
While the real estate market in India has seen a price shift in the recent past, with attractive currency rates, buying a property in India has also been more lucrative.

Type of Property NRIs Can Invest In:

The RBI guidelines authorise a non-resident Indian (NRI) to buy certain types of land, while other kinds of real estate can require special permits. NRIs are usually allowed to purchase immovable property in India other than agricultural, farm or plantation property.

The investor is not required to obtain any explicit approval from the RBI or to give any messages or intimations to the RBI in this regard. An NRI can purchase any number of residential or commercial properties under existing general permits. The income tax regulation also permits an NRI to buy as many residential or commercial properties as one wants.

But, if an NRI wishes to buy a farm or plantation, it will have to pursue the RBI for a particular permit, and this will be considered on a case-to-case basis by the RBI.

Inheritance of Property:

Another consideration to note is that in India NRIs or OCCs (Overseas Citizen of India Cardholders) are able to inherit any real estate property. The legislation also enables them to inherit agricultural property and farmhouses which they would not otherwise have the privilege to own. There are also no prohibitions on individuals a non-resident may inherit property from. Both NRIs and OCCs will inherit property from other NRIs or OCCs in India.

However, one thing to bear in mind is that residents of 11 countries — Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau, Hong Kong, and the Democratic People’s Republic of Korea (DPRK)—can not obtain or transfer immovable property in India without RBI’s prior approval, regardless of their residential status.


An NRI can buy the property, either as a solitary proprietor, or mutually, with some other NRI. Notwithstanding, a resident Indian or a person who is otherwise not permitted to invest in a property in India can not become a joint holder on such stock, regardless of the contribution of the second holder to the transaction.

If a person who owns property in India subsequently becomes an NRI, such an individual can continue to hold the property in India in his name. An NRI is also entitled to continue owning any agricultural land, plantation property, or farmhouse that it possessed until it became an NRI, which would otherwise not be possible to buy after he became an NRI.

Rental Income & Taxation:

They are also entitled to let the property out, regardless of when it was bought. The rent earned from such property may be shifted to the NRIs account after adequate Indian taxes on such rent have been charged.

Payment for Purchase:

As we know that no special permission is required for an NRI to purchase immovable property in India. Though, the payment can’t be made in foreign currencies. Under the Foreign Exchange Management Act (FEMA) and the Reserve Bank of India (RBI) regulations, NRIs may make the transaction using Indian currency, the Rupee & These funds have to be held in their non-resident account.

Another method of Payment is by taking a home loan from the bank. The RBI has issued general permission to banks and housing finance firms registered with the National Housing Bank to provide loans for residential property transactions in India to NRIs. The loan, which is authorised in Indian currency, must be repaid using the same currency.

The loan amount, however, cannot be credited directly to an NRI’s bank account according to the rules and must be transferred to either the seller’s or the developer’s account. The loan will be repaid using funds in the NRO / NRE account or deposits in FCNR of an NRI.

Power of attorney (PoA):

If you anytime in the future want to sell your property, either you can do it in person by visiting India or you can give this authority to the special power of attorney. But after the payment of the stamp duty, the PoA has to be registered in India.

From the above-mentioned details is very clear that an NRI can purchase as well as can sell property in India.

SBP Group has been serving its Indian and international customer base for a long time now and is renowned for its finest real estate offerings and is often recognised as one of Punjab’s leading real estate brands for its dedication and loyalty to effective execution and commitments.

We are striving to offer the essence of genius architecture and are creating a period of prestigious properties. We are known for our quality and timely delivery of planned, produced and constructed projects with utmost detail and zeal. You can also visit our website and the different initiatives that are ongoing and delivered, marking achievement in every aspect to provide our customers with the best lifestyle & investment option.

They are usually a lot of doubts and queries for a person who decides to buy a property & we are always available for you to answer your every question & to give you proper information regarded real estate, property, investment & many more.

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