Your insider guide to buying property in India as an Indian-origin investor

Real estate investment in India has been an emotional choice for Indian origin individuals, but it also makes a lot of financial sense.

For Non-Resident Indians (NRIs), the Indian real estate market often offers a stronger growth potential than their country of domicile. You should explore Indian real estate as a part of your NRI banking investments, and the rules and regulations around it.

Can NRIs buy property in India?
 

NRIs can buy property in India, subject to a few rules and regulations. These important rules and regulations include –

• An NRI residing outside India can purchase residential and commercial property and sell it to an NRI/PIO or a Resident Indian.
• An NRI cannot purchase agricultural land, plantations, farmhouses, etc. However, the NRI can inherit such property, and sell such inheritance to permanent residents and citizens of India only

These rules are also applicable to Persons of Indian Origin.

How can NRIs buy property in India?
 

While buying a property in India, you must keep the following aspects in mind -

• Payments – 

NRIs can pay from funds received in India through NRI banking channels in the form of inward remittances or funds held in their non-resident accounts–NRE/NRO or proceeds from an FCNR deposit..

IDFC FIRST Bank offers NRE & NRO Savings accounts and Deposits (INR denominated) and FCNR deposits (in select foreign currencies) where you get competitive interest rates and fast and efficient remittance service to and from India.

• Loan arrangement –

Non-residents can use a home loan to finance their purchase through their NRO/NRE account. IDFC FIRST Bank Home Loans can cover requirements of up to ₹5 crores, which you can comfortably pay over a tenure of up to 30 years.

• Documents required –

You will need documents like the Indian passport, PAN, Non-Resident Status Proof (like a Visa, PIO card etc.), employment documents, salary slips, tax returns, the NRE/NRO bank statements, etc. You may also need a local co-applicant to act as the Power of Attorney.

Investment options and considerations
 

If you plan a real estate investment in India, consider factors like:

• The reputation of the developer and project
• Building approval, environmental and other clearances, presence of no-dues certificate, etc.
• Consider the TDS deduction and capital gain tax rules on real estate investment in India 

​​Conclusion

IDFC FIRST Bank Home Loans are available to salaried NRIs through a fully digitised process and dedicated NRI banking guidance. To enjoy a minimal documentation process, a flexible repayment tenure, FASTRACK balance transfers and many exciting benefits explore IDFC FIRST Bank Home Loanstoday!