RealtyZing.comHome | Contact Us | Disclaimer
  Property Information in India Indian Real Estate Portal
Find House of your dream.............
Real Estate India, India Properties, Investment in India

Non Resident Indians - NRI

Smart EMI Calculator  
Loan Eligibility Calculator  
NRI Property on Rent
NRI Realty Options
NRI Home Loans in India
FDI & Other Policies for NRI
A non-resident Indian (NRI) is a citizen of India who has migrated to another country, a person of Indian origin who resides outside India, or a person of Indian origin who has born outside India. They are residing across the world with an estimated population of 40 to 100 million. Presently, there are many options available for non-residents to invest in India. 'Real Estate' is one of the best option for non-residents because Indian real estate is witnessing a wide range of transformations that are expected to make India a preferred destination. The reasons for this being the fact that real estate sector in India is being self-organized, professionalized, and India is also one of the emerging economies of the world. According to experts, the boom in the realty sector is most likely to continue till 2015 making investment in real estate a lucrative option for at least five-six more years. Also, Investment in Indian Real Estate is one of the best option to earn maximum benefits or returns.

Many NRIs and Persons of Indian Origin (PIO) across the world are intended to invest in Indian Real Estate - in both commercial and residential properties. NRIs and PIOs also plan to buy such properties as an investment, and rent them out to make a steady source of income. The IT boom in India has brought back NRI's to invest in their country as the economy is climbing the ladder high. Recent landmark decisions to open Foreign Direct Investment (FDI) to real estate will help the industry greatly.

NRI Investments in India

Government of India has simplified and liberalized the rules regarding purchase, rent and sale of immovable property by Non Resident Indians (NRIs) in recent years. Let's have a look at the current regulations for NRIs regarding purchase, renting out and sale of residential / commercial property:

Residential Property

  • Indian Citizens
    Indian citizens who are residing abroad can purchase a residential (apartment, house, etc) property or immovable property for residential use without seeking any permission from the Reserve Bank of India (RBI).

  • Foreign Citizens of Indian Origin
    RBI has also permitted foreign citizens of Indian origin, whether resident in India or not, to attain by purchase or inheritance, hold and transfer or dispose of by way of sale or immovable property in India for residential purpose subject to certain conditions. In case of a person resident outside India, they can attain a maximum of two properties, without RBI permission.
    The RBI has also delegated the powers to authorized dealers (Banks) to grant loans to NRIs against the security of NRE/FCNR deposits (subject to certain conditions) for purchase of immovable property. There is also no limit on the number of properties an NRI can buy.

Commercial property:

Foreign citizens of Indian origin can purchase and sell commercial property in India subject to certain conditions. Some of these conditions are listed as follows:

  • Purchase consideration should be paid out of foreign remittance or out of funds in NRE/ FCNR account.
  • Repatriation to the level of original investment made shall only be permitted subject to accomplishment of the following conditions:
  • Property has been purchased on or after May 26, 1993.
  • The property is not transferrable before three years from the date of purchase deed or from the date of disbursement of final installment, whichever is later.
  • The balance sale advanced should be credited to NRO account. Letting out of the property is acceptable as per the general permission given by the RBI.

Repatriation:

It is mandatory to take the prior approval of RBI before the repatriation of sale proceeds, provide:

  • Such sales should be conducted after three years from the date of acquisition or from the date of payment of final installment of consideration, whichever is later.
  • Such property is bought on or after May 26, 1993.
  • Repatriation is limited to the level of foreign exchange paid for acquirement of immovable property. In case of sale of residential properties, the amount equivalent in foreign exchange paid for acquisition of maximum two properties and subject to certain conditions.

RealtyZing - Your Home Loan Advisor

It is mandatory to take the prior approval of RBI before the repatriation of sale proceeds, provide:

  • Such sales should be conducted after three years from the date of acquisition or from the date of payment of final installment of consideration, whichever is later.
  • Such property is bought on or after May 26, 1993.
  • Repatriation is limited to the level of foreign exchange paid for acquirement of immovable property. In case of sale of residential properties, the amount equivalent in foreign exchange paid for acquisition of maximum two properties and subject to certain conditions.

Facilities to Returning Indians
There is no requirement of declaring or surrendering the foreign currency assets abroad for NRIs returning to India after a continuous stay abroad for one year and above. They are allowed to retain their foreign currency accounts with banks abroad. Also they have the complete independence to utilize these assets as well as income earned or stale proceeds received subsequently.
Contact Us | Disclaimer

Copyright © 2009 RealtyZing.com, All Rights Reserved