Pune is a popular destination for NRI investment as it offers a good, cosmopolitan lifestyle, potential for handsome rentals and stable return on investment. Some of the plus points of Pune include:

  • Proximity to Mumbai and easy connectivity with the Expressway
  • Offers options to wide spectrum of investment budgets
  • Healthy rate of employment generation – especially from the IT/ITeS, manufacturing and automobile sectors – ensures demand and property purchasing ability with 6th highest per capita income in the country
  • Considered 8th largest metropolitan economy
  • 2nd in India in software exports , contributes 9%
  • Good educational, medical, recreational, cultural facilities – known as ‘queen of Deccan’ and ‘Oxford of the East’
  • Good infrastructural development and connectivity by road, rail & air
  • Steady growth of market because of the job opportunities, affordability, lower cost of living and attraction as a safe, cosmopolitan city.
  • 2nd best city in the country on quality of life
  • 8th in country in terms of Urban agglomerations population size
  • Considered 4th best city for business in India


1) Do non-resident Indian citizens require permission of The Reserve Bank to acquire residential/commercial property in India?


2) Do foreign citizens of Indian origin require permission of the Reserve Bank to purchase immovable NRI property in India for their residential use?

Yes. However, the Reserve Bank has granted general permission to NRI citizens, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are, therefore, not required to obtain separate permission of The Reserve Bank.

3) Who is a foreign citizen of Indian Origin?

A foreign citizen (other than a citizen of Pakistan, Bangladesh, Afghanistan, Bhutan, Sri Lanka or Nepal) is deemed to be of Indian origin if:

a.) He held an Indian Passport at any time or;

b.) He or his father or paternal grandfather was a citizen of India by virtue of the constitution of India or the Citizenship Act, 1955.

4) In what manner should the purchase consideration for residential immovable property be paid by foreign citizens of India origin under the general permission?

The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts maintained with banks in India.

5) What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable Nri properties in India under the general permission?

They are required to file a declaration in form IPI 7 with Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable NRI India properties or final payment of purchase consideration along with a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

6) Can NRI India Properties be sold without the permission of Reserve Bank?

Yes. Reserve Bank has granted general permission for sale of Nri properties. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

7) Can NRIs acquire or dispose residential property by way of gift?

Yes, Reserve Bank has granted general permission to NRIs to acquire or dispose of NRI India Properties in up to two houses by way of gift from or to a relative who may be an Indian citizen or a person of Indian origin (PIO) whether resident in India or not, provided gift tax has been paid.

8) Can immoveable NRI property held in India, be transferred by way of gift to relatives/registered charitable trusts/organizations in India?

Yes,general permission has been granted by Reserve Bank to non-resident persons (foreign citizen) of Indian Origin (PIOs) to transfer, by way of gift, immoveable property held by them in India to relatives and charitable trusts / organizations subject to the condition that the provisions of all other laws, as applicable are complied with.

9) Can NRIs acquire commercial properties in India?

Yes, under the general permission granted by The Reserve Bank, property other than agricultural land/farm house/plantation property can be acquired by NRIs provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchaser’s NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

10) Can they dispose of such NRI Indian properties?

Yes, NRI properties in India may disposed of.

11) Can sale proceeds of NRI property be remitted out of India?

Yes. Repatriation of original NRI investments in respect of Indian properties purchased by NRIs on or after 26 May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the NRI property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final installment of consideration amount, which ever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8.

12) Can property (residential/commercial) be given or rent if not required for immediate use?

Yes, Reserve Bank has granted general permission for letting out any immovable properties in India. The rental income or proceeds of any investment of such in-come has to be credited to NRO account. (And repatriation from NRO account is to be reported to RBI)

13) Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?

The Reserve Bank has granted some general permission to certain financial institutions providing housing finance e.g. HDFC, LIC Housing Finance Ltd., etc, and authorized dealers to grant housing loans to NRI nationals for acquisition of a NRI house/flat for self-occupation subject to certain conditions. Criteria regarding the purpose of the loan, margin money and the quantum of loan will be at par with those applicable to resident Indians. Repayment of the loan should be made within a period not exceeding 15 years, out of inward remittance through banking channels or out of funds held in the investors’ NRE/FCNR/NRO accounts.

14) Can Indian companies grant loans to their NRI staff?

The Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Note: The Content given above is the extracts from RBI Publications.

Disclaimer: The purpose of this FAQ is to provide the visitors of this site a general understanding on the various issues relating to NRI real estate Investments within the Indian housing sector. The following FAQ been prepared on the basis of advice received on planning for making an NRI investment and may vary from person to person, based on facts of such case. Reasonable efforts have been taken in collecting, preparing and providing quality information, but we do not warrant or guarantee the accuracy, completeness, adequacy or currency of the information. The contents of this FAQ page relating to NRI investments are subject to changes / amendments made by the CBDT / Finance Ministry.