India Real Estate NRI: What You Need to Know Before Buying Property

When an NRI, a Non-Resident Indian who lives abroad but holds Indian citizenship. Also known as Non-Resident Indian, it buys property in India, they’re not just making a real estate move—they’re navigating tax laws, residency rules, and banking restrictions that most locals never face. This isn’t about buying a house. It’s about protecting your money, avoiding surprise taxes, and making sure your investment actually works for you.

Many NRIs assume they can buy any property, anytime, with no limits. That’s not true. You can buy residential or commercial property, but agricultural land, farmland or plantation property in India that NRIs are legally barred from purchasing is off-limits. You also can’t buy property jointly with a local resident unless they’re your spouse. And if you’re an OCI holder, an Overseas Citizen of India who gets lifelong residency rights but not full citizenship, you can live there forever, rent out your property, and even get a home loan—but you still can’t vote or hold public office. These aren’t small details. They’re the difference between a smooth investment and a legal headache.

Then there’s the tax side. If you stay in India for more than 182 days in a year, your tax status changes. Suddenly, your rental income from that Mumbai apartment becomes taxable in India. Your capital gains from selling a Delhi flat? Also taxed. And if you’re sending money back home to pay the EMI, you need to track the source—funds from your NRE account are tax-free, but transfers from an NRO account aren’t. It’s not about hiding money. It’s about moving it the right way.

And don’t assume banks will make it easy. Getting a home loan as an NRI? Possible—but lenders want proof of income, stable employment abroad, and sometimes a local co-applicant. Interest rates are often higher than for residents. You’ll need a PAN card, an NRE or NRO account, and documents that might take weeks to get from overseas. This isn’t a quick online application. It’s a process.

But here’s the good part: India’s real estate market still offers strong long-term growth. Cities like Bengaluru, Pune, and Hyderabad are seeing steady demand. Rental yields in tier-2 cities can hit 6-8%. And if you plan to retire back in India, locking in a property now means you avoid future price spikes. The key isn’t rushing in. It’s knowing the rules before you sign anything.

Below, you’ll find real stories and clear guides from people who’ve done this. How long can you stay without losing your NRI status? What’s the best way to fund your down payment? Can you use your foreign salary to qualify for a loan? We’ve collected the answers—no fluff, no jargon, just what actually matters when you’re buying property in India as an NRI.