FAQs Related to NRI Buying Residential or Commercial Property India

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NRIs-Taxes and Rules » Immovable Property Issues

Q1) Can an NRI invest in immovable property in
India?
Ans: Yes, an NRI can definitely invest in immovable
property in India.

For Indian Origin NRIs
Under section 31 of FERA foreigners can invest in two possible ways:

For Non-Indian NRIs
Foreign citizens of non-Indian origin can invest in property provided:

Q2) What investment related care should an NRI
take while selling an immovable property?
Ans: Reserve Bank of India has formulated no implication
for non-resident Indians to sell their immovable property in India.
But, the Indian buyer in this case (if any), is obligated to take
permission prior to payment of the purchase price (under section
9 of FERA).

Q3) Can NRI acquire Indian property from Indians?
Ans: Yes, he can.

Q4) Can an NRI apply for home loan in India?
Ans: Yes, RBI has granted general permission to
banks like HDFC, LIC Housing to cater the home loan related needs
for NRIs for acquisition of residential property in India, but
subject to some conditions.

Q5) Are foreign citizens of India eligible to
acquire commercial properties in India?
Ans: Yes, they are, but under the general permission
granted by the Reserve Bank, which are subject to further terms
and conditions. A commercial property includes properties other
than agricultural land/farm house/plantation property.

Q6) Can an NRI let his property on rent in India,
if not in use?
Ans: Yes, Reserve Bank has granted permission for
letting out an immovable property in India to NRIs.

Photo: A residential apartment in Hitec City, Hyderabad by Nikhil B, licensed under CC BY-SA 2.0, via Wikimedia Commons.