With the exception of agricultural land, plantations and farmhouses, Non Resident Indians are eligible to purchase residential or commercial property in India, without any permission from the RBI.
Mode of payment
Payment towards purchase of the property can be made out of inward remittances in foreign exchange through banks, or from the individual's NRE/ FCNR (B)/ NRO accounts maintained in India.
Mode of Remittance
The investment by NRIs can be either through inward remittance through banks or from the NRE/FCNR account of the investor.
NRIs can invest in Indian real estate in the following segments, with repatriation benefits, subject to Government approval:
• Development of serviced plots and construction of residential property, townships, commercial property, urban infrastructure and manufacture of building materials.
• NRIs can invest in housing finance companies, and in any real estate firm venturing into development of residential or commercial property.
• NRIs can make unlimited investments in shares or convertible debentures of an Indian company in a public or rights issue, except in the case of shares of companies engaged in agricultural or farmhouse or plantation business.
• In the case of firms and proprietary concerns, NRIs and PIOs can invest through their NRE/FCNR accounts in India if the firm is not engaged in agricultural business. None of the investment in this category is eligible for repatriation.