NRIs ( Non Residential Indians ) make for a high-potential client , which makes Indian Real estate market most appropriate destination.
Today more than 240 million Indians are living in abroad. Most of them have high disposable income and have propensity to buy real estate in India. Of course, there is no restriction for NRIs to purchase property in India.However, dealing with NRIs with domestic clients are quite different. They come for a limited period of time in India and expect the matter to become smooth & hassle free.
On the other hand, there are several regulatory requirements that NRIs need to fulfill in order to buy property in India.
►Who is an NRI?
As per Foreign Exchange Management Act (FEMA) 1999, an Indian who stays for less than 182 days in India is an NRI. A person is identified as an NRI if he lives outside India for an indefinite period of time,for the purpose of employment or business.
►Are NRIs eligible to get loans from banks and financial institutions for buying property in India?
The Reserve Bank of India (RBI) has authorized financial institutions such as LIC Housing Finance and HDFC to sanction loans to NRIs for buying housing properties in India. However, such loans shall be provided only on properties that NRIs buy for self-use.
►Are NRIs allowed to buy real estate in India jointly with other Indian citizen/s or Person of Indian Origin (PIO)?
Yes, it can be done. But an NRI or a PIO cannot buy property jointly with a foreign citizen. Also, NRIs cannot buy agricultural land or farm house in India.
►Does NRI sell property in India?
An NRI can sell his property in India just the way any Indian can do. There is no requirement of any specific permission from any regulatory body, including the RBI. However, there are restrictions with regard to transfer of funds from sale of an NRI property.