Important Tips To Buy A Home For NRIs

Published on: 02 February 2015


With approximately more than 20 million NRIs (Non-resident Indian) and PIOs (Person Of Indian Origin) globally, the overseas investment into Indian real estate has never been an issue. Majority of them have invested in their homeland in line with their individual future plans.

Factors for consideration for NRIs while buying property in India:

Which property can a NRI or PIO buy?
NRI or PIO can own residential and commercial properties in India and there is no restriction on the number of properties you can buy. However, you cannot purchase any agricultural land, farm house, and plantation property. You can have ownership of such property only if they have been gifted or inherited.

How to pay for these properties?
The money for purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the Non Resident External (NRE), Non Resident Ordinary (NRO), or Foreign Currency Non Resident (FCNR) Account.

Repatriation of the capital gains
NRIs and PIOs have been allowed to repatriate original investment in equivalent foreign exchange in residential/commercial properties. However, the gains from such transactions have to be re-invested in the real estate market in India.

Availability of home loan
Loan to NRI is available the same way as an eligible resident. However, the following criteria must be adhered to for availing a home loan:

  • Minimum age of 18 years
  • Valid Indian passport (for NRIs)/valid foreign passport (for People of Indian Origin ÔÇô PIOs)
  • Steady source of income
  • Employed overseas for at least two years
  • Valid job contract or work permit

Can a NRI sell or transfer a property?
An NRI can sell a property in India to a person resident in India or to another NRI. A PIO can sell a property in India to a person resident in India or to NRI or another PIO, but after having a prior approval from the Reserve Bank of India.

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