Process of owning real estate in India for NRIs – ICICI Bank Blog

The buying and selling of immovable properties in India is governed by the Real Estate Regulatory Authority (RERA). As an NRI, you are eligible to buy residential and commercial properties in India without any specific permission. Read further to know the process to buy real estate property in India.

Real estate is a lucrative investment option for citizens in India as well as those settled abroad. Many NRIs buy property in India. However, while buying a property in India, one of the differences between the resident Indians and NRIs is that the latter can invest only in residential and commercial properties. NRIs can buy or sell such properties to a resident in India or other NRIs. In terms of types of property, FEMA  does not allow NRIs to invest in agricultural lands or farmhouses; however, one can inherit such properties.

Investment by NRIs in India

NRIs may have the urge to own a property in India to maintain a connection with their native country. If you are looking for a long-term investment, then you should invest in real estate in India. Some of the major investment areas include cities like Delhi NCR, Bangalore, Mumbai and other emerging cities like Pune and Hyderabad among others.

Ready to invest in a property in your home country? Below is the procedure to get started:

1. On the budget front, plan how much you are ready to invest. This includes the stamp duty and registration fees

2. Select a suitable location that will have a favourable impact on the resale value of the property

3. If you are buying a property in order to earn a rental income, remember to select homes in highly populated areas and know the rental rates of the locality

4. You can determine your Home Loan eligibility using an ICICI Bank Home Loan eligibility calculator. Improve your loan eligibility by jointly applying for the loan with a co-applicant

5. Ascertain which documents are required for submission at the time of buying the property

6. NRIs can apply for an ICICI Bank Home Loan even before selecting a property. The Bank will sanction the loan based on your repayment capacity

7. Apart from stamp duty and registration fees, you are also required to pay taxes

8. If you want someone to conduct the real estate buying and transaction process on your behalf, you have an option to give the Power of Attorney (POA) to your friends or relatives living in India

9. EMIs are one of the easiest ways to repay your Home Loan, but changes in forex may impact your EMIs. Therefore, it is always recommended to make a payment through rentals.

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