Indian Law and Popular FAQs on NRI Real Estate Investment
Sun, 08/08/2010 - 08:01 — LIG Reporter
Indian Law on Real Estate: Can NRIs and Overseas Corporate Bodies (OCB) Invest in India?
The real estate sector in India is fast emerging as an attractive investment destination, for NRIs. The highly unorganized real estate sector in India is undergoing self-organization because India has huge market potential in real estate, today. Therefore, it is important to be aware of Indian law and popular questions that NRIs tend to ask before they make real estate investments in India.
Indian Law on Real Estate: Can NRIs and Overseas Corporate Bodies (OCB) Invest in India?
NRIs and OCBs can make investments in India in consonance with Indian law, RBI rules and regulations as well as other regulations set forth by the Foreign Investment Promotion Board (FIPB).
NRIs and OCBs can make up to 100% equity investment in real estate sector and the nation’s civil aviation sector. Further, all investments, except for the real estate investments, are fully repatriable. For real estate investments, the lock-in period on original investment is 3 years.
Indian Law on Real Estate: Can NRIs Avail House Loans for Residential Purposes?
The Reserve Bank of India has permitted certain financial institutes, to grant home loans to NRIs who want to purchase real estate property for the purpose of self occupation. However, the grant of housing loans is subjected to certain conditions.
Indian Law on Real Estate: Can an NRI Acquire an Immovable Property in India, through Inheritance?
An NRI is allowed to inherit a real estate property in India, from a resident Indian. Also, a NRI can inherit an immovable property in India, from a person who resides outside India. However, such a property must have been acquired in consonance with the foreign exchange law or the stipulations of the Foreign Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations, 2000.
Indian Law on Real Estate: Do NRIs Require RBI’s Permission to Sell their Property in India?
NRIs are not required to seek the permission of the RBI to sell their property in India. The RBI has given general permission guidelines for the sale of properties that are owned by NRIs in India. However, if the property is bought by a foreign citizen of Indian origin, the funds towards the purchase consideration should be paid out of NRE/FCNR accounts or remitted to India.
It must be understood that NRIs are allowed to invest in any real estate property, except for farm houses, agricultural land and plantation properties.
Comments
dear sirs,
what documents shall be needed, for an OCI(overseas citizenship of India), to buy a residential plot in India?
Kindly enlighten me.
Sunil Agarwal
Dear Sunil,
Thanks for showing trust in LawIsGreek to solve your query.
We request you to enter your query by using the "Ask for Legal Advice" section on the site. That will help us direct this to the most relevant lawyers.
Legally yours,
LawIsGreek team.
Post new comment