The real estate sector in India is fast emerging and is an attractive investment destination, for NRIs. NRIs can make up to 100% equity investment in real estate sector, all investments, except for the real estate investments, are fully repatriable. Therefore, it is important to be aware of Indian law and popular questions that NRIs tend to ask before they make real estate investments in India. Given below are the key points to be considered before investing in Indian real Estate sector.
- Non-Resident Indian (NRI)- that is a citizen of India resident outside India can freely purchase immovable property in India
- The general permission, however, covers only purchase of residential and commercial property and not for purchase of agricultural land / plantation property / farm house in India. Such proposals will require specific approval of Reserve Bank and the proposals are considered in consultation with the Government of India
- A NRI who has purchased residential / commercial property under general permission, is not required to file any documents with the Reserve Bank
- There are no restrictions on the number of residential / commercial properties that can be purchased as of now
- A foreign National of Non-Indian Origin cannot be a second holder to the immovable property purchased by an NRI
- NRI’s can freely acquire immovable property by way of gift; however; the property can only be commercial or residential. Agricultural land / plantation property / farm house in India cannot be acquired by way of gift