What type of property can an NRI buy?

NRIs can buy as many residential and commercial properties as they wish. However, the Indian constitution does not allow NRIs to invest in an agricultural land or farm house in their name. These properties can only be inherited.


The payment can be done through funds remitted to India from abroad through regular banking channels. An NRI can also use funds from the Non-Resident External (NRE), Non-Resident Ordinary (NRO) or Foreign Currency Non Resident (FCNR) accounts to buy a property in India.

Repatriation of capital gains

The NRI community is allowed to repatriate its original investment in equivalent foreign exchange value for either residential or commercial property. However, the gains generated through these transactions have to be re-invested in the Indian real estate market itself. Further, in case of residential properties, NRIs are allowed to remit sale proceeds outside India for up to two properties without any approval from the Reserve Bank of India (RBI). The apex bank's approval is required for the third and subsequent property purchases.

Home Loans

NRIs are eligible for a home loan in India under the same conditions that apply to an Indian citizen. There are a few differences in the rate of interest and loan tenure. The rate of home loan interest is usually higher for an NRI as compared to an Indian resident. While a resident can get a maximum loan tenure of 30 years, for an NRI, it ranges between five and 20 years. There are some conditions that need to be fulfilled before applying for a loan including the following:

  • The NRI should be aged 18 years or above
  • Should have a valid Indian passport
  • Should be employed abroad for two years or more
  • Should have a steady source of income
  • Should possess a valid work permit


How can NRIs invest in Real Estate in India?

According to the regulations of FEMA and RBI, an NRI is allowed to do the following investments in property:

  • Any immovable property can be purchased by an NRI in India other than any agricultural land, farm house and plantation property.
  • He can get any immovable property as mentioned above by gift from Indian resident, Indian citizen residing outside India or person of Indian origin.
  • He can transfer immovable property to any resident of India by sale.
  • He can transfer any agricultural land, farm house or plantation land to any resident of India by gift.
  • He can also transfer his residential or commercial property by means of gift to any person either residing in India or abroad or person of Indian origin.
How to conduct Pruchase procedure?

A sale agreement must be drawn on a Rs 50 stamp paper, which will mention the final amount, advance payment, time limit to pay the due amount and details of installments.

Once the sale deed is completed, you need to get it registered at the sub-registrar or Sub-District Magistrate. The overseas buyer’s foreign address has to be mentioned in the sale agreement. He can appoint a representative in India (with a power of attorney) to act on his behalf. The power of attorney should be notarised with the Indian consulate in the buyer’s country of residence.

The property can be registered in the name of the NRI and the holder of the power of attorney can sign on his behalf by producing a copy of the document to the appropriate authorities.

What to check before buying a property in India?

Few points of consideration are under:

Property name:

The name of property should be clear from issues and the seller should have the required right to sell it, especially if it is inherited or any joint property.

No Dues Certificate:

Always check that there will be no outstanding electricity/water bills or any other authority dues pending with the property. Take a no dues certificate from the seller at time of purchase.

Bank release letter:

It is advisable to take the bank release letter from the concerned bank, if the property had been mortgaged as security in any type of loan.


The property of sale should have all approvals and permits from the civic authorities in terms of construction.

What are the sources to finance the purchase of property in India?

The payment for purchase of permitted property by an NRI can be made by way of remittance through banking channels from abroad or from money lying in their NRE/NRO or FCNR account. The money for purchase of the permitted properties has to come only through banking channels hence the payment cannot be tendered in the form of traveler’s cheques or foreign currency.

NRIs are even allowed to finance the purchase with home loan in Indian Rupees. The home loan can be granted by the Indian employer of the NRI employee for the purpose of financing of the property.

Are NRI/PIO/OCI eligible for Housing Loans to buy property from the Indian Banks/ NBFCs?

An authorised dealer or a housing finance institution in India approved by the National Housing Bank may provide housing loan to a non-resident Indian or a person of Indian origin residing outside India.

For acquisition of a residential accommodation in India, subject to the following conditions, namely:

  • The quantum of loans, margin money and the period of repayment shall be at par with those applicable to housing finance provided to a person residing in India.
  • The loan amount shall not be credited to Non-resident External (NRE)/Foreign Currency Non-resident (FCNR)/Non-resident non-repatriable (NRNR) account of the borrower.
  • The loan shall be fully secured by equitable mortgage by deposit of title deal of the property proposed to be acquired, and if necessary, also be lien on the borrower’s other assets in India.
  • The installment of loan, interest and other charges, if any, shall be paid by the borrower by remittances from outside India through normal banking channels , i.e., NRO/NRE account in India or out of rental income derived from renting out the property acquired by utilization of the loan or by any relative of the borrower in India by crediting the borrower’s loan account through the bank account of such relative (The word ‘relative’ means ‘relative’ as defined in section 6 of the Companies Act, 1956.)
  • The rate of interest on the loan shall conform to the directives issued by the Reserve Bank of India or, as the case may be, the National Housing Bank.
  • A maximum of 80 per cent amount is financed by the financial institution. The rest should be given by the NRI.
  • The NRI has to repay his principal amount as well as interest part from that similar channel only.

Grrow Property Management for NRI

3L+ NRIs served across the globe


Happy Customers

5,000 Cr+

Worth Homes Sold


Relationship Managers

Inquire Now

Fill the below form & you’ll hear from us within 24 hours!