Things NRIs should keep in mind while buying property in India


Things NRIs should keep in mind while buying property in India

If you are a Non-Resident Indian (NRI) planning to buy property in India, there are a few things you should always keep in mind before making an investment. Fate or will may have pushed you abroad and awarded you the NRI mark, but this does not differentiate you from other ordinary Indians residing within the borders of the country, especially when you are ready to purchase the property. NRIs have played a pivotal role in the Indian real estate market over the years. Due to the many rules and regulations involved in this process, buying real estate can be complicated. So, if you are planning to buy property in India, here are a few things that can help you navigate the investment process smoothly. Things NRIs should keep in mind while buying property in India 1

Nature of the property

Being an NRI, you can buy all types of real estate in India, apart from farmland, farms, and agricultural properties. To get these properties in India, you will need to get approval from the RBI and the government.

Tax Benefits

NRIs offer some tax advantages. If you sell the purchased property within 3 years, it is included in short-term capital gains as taxes apply. If you sell the same property after 3 years, it will be included in long-term capital gains where investment in another property is feasible.


All investments in Indian currency are supposed to be made using the NRE (Non-Resident Rupee) account and the NRO (Non-Resident Ordinary Rupee) account of any Indian bank or Foreign Currency (Non-Resident Foreign Currency) deposit account to avoid foreign currency fluctuations. You can even apply for home loans in case the funds are insufficient. However, the loan must be repaid in Indian currency using the bank accounts mentioned above. Read More - Rent or EMIs: The Confusion in Every Millennials Mind

Home loan

The Reserve Bank of India has granted general permission to banks and housing finance companies registered with the National Housing Bank to provide loans to NRIs for the purchase of residential property in India. The loan must be repaid in Indian currency, using the same currency. However, as per the rules and regulations, the loan amount cannot be directly credited to NRI's bank account and must be disbursed to the seller's or developer's account. You can repay the loan using funds in your NRI/NRE account or FCNR deposit.

Power of attorney (PoA)

Since you are residing outside the country, you have the option to grant PoA to your friends or family to complete the property purchase in India. The business plan can be general or specific about the rights that your representative can exercise.


You should conduct a thorough background check on the builders, owners, or developers of the properties you plan to purchase. One should always try to engage in a direct deal and avoid all forms of brokers and middlemen to avoid complications and deception.

EMIs and the Forex

Paying in equal monthly installments is one of the easiest ways to pay off loans. However, changes in the exchange rate can affect your EMI and add to your problems. Therefore, it is always recommended to pay through rentals. As an NRI, you should invest in India keeping these points in mind to make it a smooth process for you. Investing in real estate for NRI has not only been a profitable investment but also works on an emotional ground where you can always be in touch with your home country. The Indian government made this whole trip simple and hassle-free. Also Read - 5 Reasons You Must Start Budgeting Your Finances Right Now