Buying a Property in India - A Brief Guide for NRI

Buying a house in one’s homeland is more than just a dream. The feeling of owning even a little space in one’s birthplace is more than gratifying. The feeling is all the more intense for an NRI to buy a house in their motherland. 

There are numerous factors an NRI considers before making a house purchase in India.
NRIs most often try to find a house amidst luscious green pastures away from metropolitan cities. Some people choose to buy a house close to the location where they spent a significant part of their lives. The ultimate motive, in this case, is For the uninitiated, a Non-Resident Indian (NRI) is a resident of India who has been living outside of India for more than 192 days. 

The word real-estate instigates emotions of anxiety in everybody. However, for an NRI, the world of real estate offers numerous benefits to an NRI.
– For starters, the lower costs of houses in India in comparison to the cost of houses in the countries they live in is a driving factor for NRIs to invest in real estate in India.
– The difference in the value of rupee against currencies of other developing nations gives a well-designed advantage to NRIs to buy a house in India.
– A lavish lifestyle abroad may be enticing but the unspoken love for one’s motherland draws them back eventually.
– Having a permanent home in their homeland offers NRIs an option to return to their home if and when they decide to return to India.
– Government of India’s RERA initiative facilitates transparency in the entire process ensuring consumer protection to NRIs attempting to buy a house in India.

RERA, also known as the Real Estate Regulation Act is an act by the government of India which aims to bring transparency in the process of home purchasing to make real estate a well-defined boost. From security to authorisation, RERA assures consumers do not find themselves stuck anywhere in the process.

There are a series of property rules an NRI must know and make sure they do not skip in the process of investing in Indian real estate. The following rules will clear the massive chunk of confusion you might have as an NRI.

– NRIs do not need the permission of RBI for buying property

If you are planning on investing in any Indian property, you are not required to take any prior permission from RBI. however, all your real estate transactions will be governed as mentioned under the Foreign Exchange Management Act (FEMA).

– Can NRIs invest in any property?

To answer this question, NRIs are entitled to invest in any residential or commercial properties in India. However, the only differentiation occurs while investing in agricultural land, farmhouse and plantations. If you wish to invest in the latter, you must get permission from the concerned authorities under the government of India.

– Property funding rules

Funding is a critical aspect of property investment. If you are an NRI, there are certain specifications one must be aware of. All financial transactions with respect to property investment should be carried only in Indian currency via Indian Banks. If one wishes to take funding, it has to be through Indian Banks. These Indian Banks have the authority to fund up to 80% of the property value.

– Tax Benefits

When it comes to tax benefits, Indians irrespective of Indian residents or NRIs enjoy the same benefits on the purchase of any property in India.

– Power of Attorney

If you are planning to invest in an under-construction property, the purchaser of the building should confer the power of attorney to the builder or any of a trusted associate.


Every time is not a good time! Especially, if you want to buy a property in India, you should not invest when the value of rupee is gaining against the value of currency as this might become more expensive.

Buying a property in India for NRIs is one huge adventurous ride. However, at the end of the ride, happiness cannot be described in words. If you are looking for comprehensive properties in Bengaluru, 5 Elements Reality is your perfect destination. Considered as one of the best builders in Bengaluru, they offer a wide range of residential spaces that are too hard to reject!

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At 5Elements Realty, we aim to help you resolve your every query, concern and doubt. We hope this information helps you
to buy a house in India. But if you have any other queries, please feel free to get in touch with us.

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