RICH Property Solutions, Ahmedabad
How an NRI can invest in commercial property in India
An NRI or an OCI can buy commercial property in India without prior RBI approval. Agricultural land, plantation property and farm houses are excluded. Payment has to come through banking channels, not cash.
What the rules say
- NRIs and OCIs can buy any immovable property in India other than agricultural land, plantation property and farm houses.
- Prior RBI approval is not needed for these purchases.
- Payment has to come through banking channels: an inward remittance, or an NRE, FCNR(B) or NRO account. Cash and travellers' cheques are not accepted.
The source is the Reserve Bank of India FAQ on purchase of immovable property. The rules are updated from time to time, so confirm the current text before you buy.
Steps to follow
- Decide the budget and the goal. Rent income, long-term value, or both.
- Shortlist properties. Ask for the lease, the tenant details and the ownership papers.
- Check the documents. Have your own lawyer review the title and the lease.
- Arrange payment through your bank. Keep records of every transfer.
- Complete the purchase and registration. Stamp duty and registration apply.
- Keep the records. You will need them for tax and for any future sale.
Why many overseas investors look at pre-leased property
A pre-leased property already has a tenant and pays rent from the day you buy, so you do not need to find a tenant from abroad. The tenant, the lease and the price still decide whether it is a good purchase. See the meaning of pre-leased property and how to work out the yield.
Money in, money out
Rules apply to taking sale proceeds and rent out of India, and they have limits and conditions. Ask your bank and a chartered accountant what applies to your case before you commit, and read the current RBI rules.
If you are looking at pre-leased property in Ahmedabad from abroad, you can send us an enquiry below.
This page is general information. It is not legal, tax or investment advice. Check the documents of any property with your own lawyer and chartered accountant.
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