Buy Property in India –A Guide for NRIs:

With the Coronavirus hitting the globe in December 2019, much has changed leading to long term impacts. Businesses came to a standstill across the world, compelling monetary agencies to slash growth forecasts for the global economy. India remained no exception.


The International Monetary Fund (IMF) has said in its World Economic Outlook October 2020 report titled, ‘A Long and Difficult Ascent’, that the Indian economy would grow at a -10.3% rate in 2020 – a downgrade of -5.8 percentage points from the agency’s estimate for the month of June.


According to the statistical data by WHO, India reported a total of 92, 21,998 COVID-19 infections countrywide, as on November 25, 2020.


After the gross domestic product (GDP) numbers for the first quarter of FY21 showed a decline of 23.9% over the same quarter last fiscal earlier, global rating agencies S&P, Moody’s and Fitch also projected Indian economy to contract by 11.5% and 10.5%, respectively, in the current fiscal.


S&P Global Ratings, on September 14, 2020, cut its FY21 growth forecast for India to -9% against -5% estimated earlier, as the number of infections in the country touch record levels. According to experts, one factor holding back private economic activity, is the continued escalation of the COVID-19.


While the strong impact of the pandemic is being felt across the globe already, different opinions are emerging on COVID-19’s impact on the real estate sector.


A health emergency that resulted in the biggest ever work-from-home experiment worldwide, has put a big question mark on the significance of commercial properties and workspaces in a post-Coronavirus world. The Covid -19 pandemic eventually lead to a global lockdown, which eventually brought most economic activity in the country to a grinding halt and has upset all sectors, and real estate is no exception.


The fact that the outbreak of Covid-19 has created deep impact on the economy of India including one of the major sector i.e. realty market in India is more than evident. Buyers are struggling with several doubts like ‘will the investment in real estate sector in the current scenario prove to be beneficial in long term in terms of appreciation and net worth’, ‘whether it is a good time to plan about investing in real estate’ etc. Not only such thoughts are worrying the potential buyers, but also making them go to and fro in their decision making process of buying property.


The good news is that the Indian real estate market has been resilient, and in spite of the slowdown that the industry witnessed due to the sudden outbreak of the Covid-19 pandemic, off late the trend is changing for good. Buyers are becoming keener and interestingly the demand in the real estate sector continues to rise mainly from the NRI customers.


The real estate sector has proven to be a beneficial asset giving highly attractive returns to the buyers as well as investors. As a result of the improved affordability in the current scenario, the Indian Realty Sector has fetched attention of both residents and NRIs worldwide and they are looking forward to buy property in India.


In spite of the major blow the real estate industry has faced due to covid-19, the current scenario, where the value of the dollar has significantly increased against Indian currency and a sense of moving back to homeland has become stronger in NRIs across the globe, along with several other reasons, developers have experienced a sudden flooding-in of enquires from international buyers.


Also this has given way to an increase in digitization of real estate with significant growth in online demand. There is a gradual shift in the real-estate sector, and technology is taking a center-stage in property leasing, buying etc. Developers and buyers are now exploring concepts like virtual tours and walkthroughs, video calls and various online property booking portals.


But before NRIs get into the process of buying a home, apartment, commercial space, or open plots in India; it is essential to consider a few important points.



Title check


A thorough due diligence of the title, ownership and possession of the plot is mandatory. When it comes to buying a plot check in whose name is the property registered. Check whether the seller is the legal owner of the property or not. The land record may differ from state to state so you need to make sure you comply with the local laws when you buy a plot.


Any buyer should trace the chain of title for the preceding 30 years by verifying the flow of title. It can be verified by checking the registered deeds/revenue records of the property concerned. Further, the purchaser should obtain a no-encumbrance certificate from the concerned sub-registrar to ensure there is no registered mortgage on the property.


Additionally, the records of the Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) should also be checked to inspect that there is no charge on the property. In order to confirm that the property is from equitable mortgage, original title deeds of the property should also be inspected.


Know your property seller


You need to verify the seller with documents like PAN card or Aadhaar or any other documents they have to prove they are the genuine seller and owner of the property before you initiate the transaction with them. The same can be verified through the property documents as well.


“In the current scenario, the purchaser should carry out a KYC (Know your customer) of the seller by verifying their PAN card and Aadhaar details. This will help in ensuring that the seller is an Indian, major by age and not a Benami property holder,” says Pillai.


Approval authority


It is important that the plot you buy is on a legally approved layout. Make sure you check with the approval authority before buying. The approving authority might vary from state to state. Plotted developments require to make sure whether the land is non-agriculture or whether it is converted. Plots need to be approved by the local authorities and you need to ensure that it is a part of approved layouts before you buy.


Demarcation of land


In a project where multiple plots are available, it is important that the size of the plot is accurate. An aptly demarcated boundary and proper identification should also be verified on the ground well in advance. One should also evaluate the applicable building regulations, available FSI, land usage etc. in order to ascertain the credibility and the suitability of the plot.”


Buyers can make use of the Dishaank App in Karnataka to find out the survey number of plots and avoid getting into any legal issues. It will also prevent buyers from buying any land or property on government lands


FEMA compliance


When an NRI plans to purchase a plot in India, the process of undertaking the title diligence shall remain the same. The NRI needs to comply with applicable Foreign Exchange Regulations. They also need to be heedful of the applicable limits on repatriation of funds outside India.


Buying through spouse


The spouse of an NRI can acquire maximum one immovable property (other than agricultural land/farmhouse/plantation property) jointly with his/her NRI spouse, provided that the marriage is registered and subsisted for a continuous period of at least two years immediately preceding the acquisition of such property, consideration must be out of funds received in India through banking channels by way of inward remittance from any place outside India or by debit to non-resident account of the person concerned, and NRI spouse should not otherwise be prohibited from such acquisition.


RBI regulations


As per the RBI regulations, payment for buying plots must be received in India through banking channels and subject to payment of all taxes and other duties/levies in India. Payment can also be made out of funds held in an NRE/FCNR(B)/NRO account.


Buying a plot is a big financial decision. Make sure that the property you buy is not only safe but also fulfills your requirements.


How does Realty Care Pvt. Ltd help NRIs to buy property in India?


Realty Care Private Limited is one of the fastest growing brands in India. As a Real Estate Firm, their first priority is to make their clients happy and secure their trust.

The company logo घर आपका, भरोसा हमारा clearly highlights their ideology and beliefs. The brand offers a complete portfolio of real estate services, including sales, leasing out of commercial and residential properties, investment, sales & marketing, property consultancy and mortgage services. They have a diversified business model which includes real estate buying, selling, renting and property management services related to commercial properties and co-working spaces as well.

Currently operating out of Delhi, they have a presence and onboard inventory in four major cities – Mumbai, Pune, Delhi, Bengaluru as well as in UAE. One of the top USPs of the firm is that they have the modern customer’s needs at the center of their offerings. The group is known for its core values like transparency, prompt delivery and integrity.


The mission of Realty Care Private Limited is to make property investment affordable, convenient as well as profitable for every investor.




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