If you are a non-resident Indian (NRI) living abroad who wants to spend your retirement days in India, this ultimate guide to NRI investment in India real estate is for you. For millions of NRIs around the world, investing in real estate is more than just a final decision – it serves as a connection to their roots. Whether you wish to own a home in your homeland or take advantage of one of the world’s fastest-growing property markets, India offers a wealth of opportunities for NRI investors. The Indian real estate market is witnessing significant growth driven by economic development, urbanisation, and infrastructure advancement.
Can NRI buy property in India? Well, absolutely. Whether you are a first-time investor or looking to expand your portfolio, we will cover everything you need. In this blog, we will discuss the types of properties you can invest in, their advantages, relevant legal terms, financial wellness and more.
What is NRI Investment in Indian Real Estate?
Though the term ‘NRI’ is familiar to most of you, let’s see what entitles someone as a Non-Resident Indian. Well, NRIs are individuals who reside or work outside India for more than 182 days in a year. NRI investment in India real estate refers to the purchasing of residential or commercial properties in India by these individuals. These investments are often made for personal use, rental income, long-term returns, or future relocation.
NRIs are permitted to buy residential or commercial properties in India, but are not permitted to purchase agricultural land, plantation property or farmhouses unless inherited or gifted. Investments can be funded through Non-Resident External (NRE) or Non-Resident Ordinary (NRO) accounts, and home loans are available from Indian banks.
Many NRIs choose to appoint a Power of Attorney (POA) holder in India to manage legal and financial processes in their absence. NRIs must comply with Indian tax laws on rental income and capital gains. With a growing real estate market and favourable exchange rates, Indian real estate remains a smart investment. NRI investment in real estate with the Confident Group can assist you in finding the perfect residence for you and your loved ones.
- The most essential document is a valid Indian passport or PIO or OCI card, establishing their identity and eligibility.
- A PAN card is mandatory for all financial and tax-related transactions, including property registration and capital gains taxation.
- If the NRI is not present in India during the transaction, a Power of Attorney, duly notarised and attested by the Indian Embassy, is required to authorise someone to act on their behalf.
- NRIs need proof of address both overseas and in India, a passport-size photo, and bank account details (NREor NRO or FCNR) for financial transactions.
- During the property purchase, documents like the sale deed, title deed, encumbrance certificate, agreement to sell, and RERA registration certificate must also be carefully verified and retained.