The real estate market in India offers a lot of scope for investors. Resultantly, the properties in the country, irrespective of the type, are fast disappearing off the blocks, signifying the post-pandemic revival in the sector. For non-resident Indians (NRIs) the Indian realty market offers huge potential. So, they utilize the same as a perfect investment vehicle. However, there are certain laws governing real estate when it comes to NRIs. Therefore, today let us discuss the three ways NRIs can acquire properties in India.
Direct Purchase
This happens to be one of the ways NRIs can own properties. Being an NRI, the concerned individual has the right to invest in commercial or residential properties. However, there are certain no-go zones as well for them like plantations, agricultural lands, or a farmhouse. These things are a strict no for Indians based abroad.
Inheritance
Before becoming an NRI an individual would have spent considerable time in India. So, the individual in question can inherit any movable or immovable property (residential, commercial, or even agricultural) in the country. No laws in India prohibit anyone from inheriting property. The inheritance can be from parents, in-laws, relatives (close or distant), or even from a person with whom he or she has no familial bond. Hence, the person inheriting the property can be an NRI or a PIO (Person of Indian Origin).
Gift
Similar to inheritance, anyone in India is free to receive a property as a gift as well. There is no legal bar on the matter. Akin to inheritance, apart from close or distant family, NRIs have no legal compunctions when it comes to getting gifts even from strangers. However, it should be kept in mind that as far as taxation is concerned there is a huge difference between the property received through inheritance and gift. The provisions pertaining to the Gift Tax Act would apply as per the nature of the case.
