NRIs and OCIs buying property in India
last updated 2026-07-21
Under FEMA, an NRI or OCI can buy residential and commercial property in India without RBI approval, with no limit on how many. They cannot buy agricultural land, farmhouses or plantation property (they may inherit these). Funding must be through Indian banking channels, and repatriation on sale follows specific rules.
What NRIs and OCIs can and can't buy
| Allowed (general permission) | Not allowed (without RBI approval) |
|---|---|
| Residential property; commercial property; any number of them | Agricultural land; farmhouses; plantation property |
Residential and commercial purchases need no prior RBI approval — they fall under the general-permission route of the Foreign Exchange Management Act. Agricultural land, farmhouses and plantations are off limits for purchase, though they can be inherited.
Funding and repatriation
Payment must come through normal Indian banking channels — an NRE, NRO or FCNR(B) account, not foreign cash. When you later sell, how much you can take back out of India depends on the source of the original funds: broadly, money brought in through NRE / FCNR(B) can be repatriated up to the amount originally invested, within limits on the number of residential properties. Compliance matters — FEMA penalties can run to several times the transaction value.
The bank-auction angle
An NRI or OCI can bid at a bank auction for a residential or commercial property on the same general-permission basis — but the agricultural-land bar still applies, so the lot's classification matters (see the agricultural-land guide). Fund the EMD and balance through the right account, and factor repatriation rules into the plan if you may sell later. AuctionScope helps you check a listing's type and numbers; the FEMA compliance is the layer to add. This is general information, not legal or tax advice.
Frequently asked questions
Can an NRI buy property in India?
Yes — an NRI or OCI can buy residential and commercial property under FEMA's general-permission route, with no RBI approval needed and no cap on the number. Agricultural land, farmhouses and plantations cannot be bought, only inherited.
Can an NRI buy a bank auction property?
Yes, for residential or commercial lots, on the same general-permission basis — but not agricultural land. Fund the EMD and balance through an NRE/NRO/FCNR(B) account and keep to FEMA rules.
Can an NRI take the sale proceeds out of India?
Within limits. Repatriation depends on the original source of funds — money brought in via NRE or FCNR(B) can broadly be repatriated up to the amount invested, subject to FEMA conditions. Take professional advice for your case.
Related terms
Sources
Rates, fees and procedures change — confirm the current position on the official portals below before you act.