Tips for NRIs to Make Investments in Real Estate


The financial institutions in India consider the NRIs to be their prospective clients. Hence NRIs can avail home loans quite easily. Here are a few tips on how the NRIs can invest in Real Estate.

  • The Indian government has declared that the Non-Resident Indians (NRI) and Person of Indian Origin (PIO) can purchase immovable property in India. However they’ve given permission to purchase only residential and commercial property. They are not entitled to buy agricultural land, plantation property or farmhouse in India.

  • An NRI can get any immovable property as a gift from any Indian citizen, Indian resident or any person from the Indian origin.

  • The NRI is also entitled to obtain any property by inheritance.

  • The NRIs who have property acquired in the country can rent out the property without the approval of the Reserve Bank. The rent received can be credited to NRO or NRE account or remitted abroad.

  • They are allowed to transfer their residential or commercial property either to an Indian citizen or NRI or POI.

  • Besides transferring the immovable properties, they also have the authority to sell them!




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Hi MKumar,

Here are a few things NRIs should keep in mind when making investments in real estate:

  1. Find out what are the different types of properties you can invest in: As an NRI, you will not be allowed to invest in agricultural land, plantations and farm houses, due to the fact that they are neither residential nor commercial properties.

  2. Find out the best locations: Look for areas that show signs of rapid development, especially if they are in or near to IT hubs.

  3. Choose a builder of repute: It is important to choose a reputed builder since it may be difficult to be physically present to check on construction status and quality. This will save you time and money.

  4. Find out tax implications beforehand – While NRIs are granted the same tax benefits as resident Indians, it would be wise to find out in advance what you can claim as tax deductions.

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