Permission for Purchase of Residential / Commercial Property
- NRIs holding Indian passports - No permission required.
- NRIs holding foreign passports - Intimation to RBI via form IPI - 7 within 90 days of purchase of property or final payment of consideration Funds through NRE / NRO accounts.
Sale of Property
- Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India
Repatriation of Sale Proceeds
- Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
- The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.
- Application of repatriation (IPI - 8) has to be done within 90 days of the sale of the property.
Income from Property
- NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.
- Some rules related to this are subject to changes from time to time.
Return an Investment and Appreciation
- RENTAL RETURNS - The rental returns on an investment in Residential property in Chennai is 5% - 6% p.a.
- Conservative estimate of appreciation on an investment in property in Chennai is about 20% p.a. NRIs start to gain by investing in Real Estate when compared to the investments on the NRNR / FCNR deposits.