Acquisition of Immovable Property by NRIs and PIOs in India With the real estate market in India slated to multiply four fold by 2010 to $45-50 billion, it is not surprising that foreign investors are eager to share the gains from an investment in the country For Non-Resident Indians (NRIs) and Persons of Indian Origin (PIO), investment in Indian real estate is monetarily rewarding and emotionally gratifying, as it helps maintain bonds with their homeland.
The Reserve Bank of India (RBI) has relaxed norms and issued simple guidelines for the convenience of NRIs and PIOs wishing to invest in Indian realty under the provisions of the Foreign Exchange Management Act, 1999. NRIs and PIOs can acquire residential and commercial property in India, though holding agricultural land, plantations and farmhouses is not allowed by the Government of India.
Resident Indians owning such property must inform the RBI if and when they acquire citizenship of another country. NRIs and PIOs are also eligible to inherit or be gifted property in India, and in turn, can sell, gift or transfer such immovable assets to resident Indians, NRIs or PIOs.