How can NRI invest in Indian real estate?

My brother is a non-resident Indian (NRI). To increase his investments and get a good return, he thought to make a real estate investment in India. He asked me to check whether the NRI real estate investment in India is possible or not. After doing some research, I discovered that it is possible. The RBI has relaxed the requirements for NRI investments in India and automatic investments are now possible. I have shared the complete details below for your reference.

How can NRI Property Investment in India Possible?

The Reserve Bank of India gave NRIs approval to purchase any type of residential or commercial property through a press release. I found online that the RBI does not require any specific permits for investors. Furthermore, the Foreign Investment Paper Board is no longer necessary for NRIs to visit to receive approval for NRI investments in India. 

An NRI is allowed to own an unlimited number of properties as long as the general permissions are in place. Moreover, they can proceed buying property in the same manner as a resident Indian. 

• In India, plantation or agricultural land cannot be purchased by NRI.

• There is no limit on the amount of home loans that can be taken out to purchase real estate in India.

• In addition, if the property remains in construction, the NRI will be responsible for paying the GST, annual property taxes after purchase, stamp duty, and registration fees.

However, my brother used

to support himself through the challenges involved in making an Indian real estate investment. 

I hope you got your query regarding NRI real estate investment in India resolved. 

The opportunity for NRIs to invest in real estate in India is promising (Non-Resident Indians). NRI real estate investment is booming due to the advantages of good returns on the minimum initial investment. You as an NRI must be aware of the norms and restrictions before investing in any real estate in India in order to prevent future issues. So I will be guiding you here about how to make an NRI investment in Indian real estate.

How to make an NRI investment in real estate?

NRIs are permitted to deal in residential or commercial real estate. However, they are not permitted to directly own any agricultural land. However, they are able to acquire or be given agricultural property. An NRI is permitted to purchase an unlimited number of properties, although taxes are determined by the property's actual use.

The RBI (Reserve Bank of India) has made the regulations easier to follow in order to increase NRI investment in India's real estate market. The Foreign Exchange Management Act (FEMA), specifies that an NRI or Person of Indian Origin (PIO) can purchase any movable property in India. But it is with the exception of agricultural land, plant property, and farmhouses, that controls all NRI real estate deals.

What documents are required for NRI to invest in real estate?

The PAN (Permanent Account Number) card is a requirement for all financial activities relating to the purchase of real estate and must be obtained by the NRI buyer. The additional documents required are a passport, address verification, and the latest photograph.

Why NRI should execute Power of Attorney (POA)?

NRIs do not have a physical address in the nation, therefore establishing a legitimate POA is required to carry out transactions on their behalf and to guard against fraud. The POA must be completed in front of two witnesses, both of whom must be present in person at the Indian Embassy. The Indian Embassy must certify the document, and registration must be finished within 3 months after the execution date. The registered POA may be used to make loans, lease or rent property, handle legal issues, and sign contracts on the NRI's behalf.

I hope you understood how to make an NRI investment in Indian real estate.