Real Estate Sector is booming with an exponential growth in both, residential and commercial property markets. Rising GDP has further boosted the demand for office spaces, industrial hubs, IT parks, residential blocks and range of other real estate infrastructure projects. Even NRIs and PIOs can avail benefits of this booming sector by purchasing a residential or commercial property in India, for own use or capital investments or leasing/renting etc.

Who is an NRI?

In simple terms, Indian origin people living outside India due to business purpose or other purpose are known as NRI. There are two major aspects of NRI such as a person having Indian passport or a person whose grandfather or father was a citizen of India under the constitution of India in citizenship act 1955 (57 of 1955).

What are the initial level formalities that an NRI has to perform for buying the immovable property in India?

NRIs always have general permission of RBI to purchase the immovable property for residential purpose. Moreover, the money will be transferred via similar banking channels such as NTE.FCNR funds organized by the Indian bank. They only need to fill up the IPI 7 form and submit it to the RBI at Mumbai within 90 days of purchasing the property with the receipt of final payment done.

Can this kind of property be sold without any permission of RBI?

Yes, obviously as RBI has already given general permission to NRIs to sell this kind of property without any troubles.

Can NRIs get loan from the authorized dealers?

Yes, an authorized dealer incorporated with Indian constitution can provide loan to the Non-Resident Indian but with some proper terms and conditions. Repayment of loan must be done within 15 years of period through the banking channels.

Would the companies provide loans to NRI employees?

Sure, RBI allows companies to grant loans to their employees deputed in abroad and possessing Indian passport. For further details, one can visit the link

What should be the role played by a real estate builder in case of NRIs purchasing immovable property in India for residential or commercial purpose?

A perfect real estate builder should provide complete support to all its clients. Excellent services should be provided throughout the deal from initial level to the last level. Moreover, support should also be offered to the client while going through the formalities and other aspects. In short, the role of a real estate builder should be to provide property to the NRIs for checking and avail them the benefits of real estate sector while conforming to all the vital standards of respective authorities. Maruti Group, being one of the renowned real estate builders of Gujarat offers all these facilities to its NRI clients while purchasing the real estate property for residential or commercial purpose.

Is there any restriction to buy any residential property by NRIs under general permission?

There are no specific restrictions on numbers of buying the property. You can get information in detail by viewing the RBI website:

What are the different options to get housing loans from the banking institutions?

To avail housing loans from the banking institutions, you need a guarantor who must have to demonstrate the money or property that will cover the whole amount of loan. The guarantor could be a person resident across India. Usually, the Real Estate Companies have tie ups with various banks and financial institutes to ease the buying process.

What are the manners of making payment or mode of payments?

Usually, the client will make a complete transfer of money via online in foreign currency through foreign exchange via normal banks or simply the money will be taken through the NTE/FCNR accounts maintained in Indian banks. Does authorizing a person with Power of Attorney in India help the process? It is not mandatory that you have to authorize somebody with power of attorney. However, in order to make the buying process smooth, the developers need to perform several activities such as filling proper documents and others at the right time. You may however make the buying process smooth by authorizing a person with Power of Attorney for specific tasks only.

Can the property be rented if there is no immediate use?

Yes, NRIs can rent their property or building while they are not using it. The whole amount of rent will be credited to their bank’s Savings account. This income would be taxable under Indian Law because earning from the rent house comes under the taxable income.

Can NRIs get the loans for residential property from the institutions providing housing loans?

Obviously, RBI has permitted several housing loan institution to grant the house loans to the NRIs for buying the residential property on finance such as HDFC, LIC housing finance and others. However, there are some specific terms and conditions but NRIs can fund the transaction through housing loan depending upon their repayment capacity.

Find Us On The Map