Key Real Estate Investment Tips for NRIs Returning to Mumbai

Key Real Estate Investment Tips for NRIs Returning to Mumbai

It has been observed that the NRIs have been investing in the real estate sector of India prominently. With the Indian government regulating the real estate space closely through introducing RERA, NRIs have received more transparency and accountability, which has resulted in increased attention by NRIs.

Investment in India Real Estate is poised to offer NRIs the benefit of higher ROIs with a lower initial capital investment. That is why NRI property investment in India is growing rapidly. In cities like Mumbai, the growth curve of the real estate space has moved upwards after the pandemic and opening of the market with new trends has only given the industry a boost in a dynamic way.

Prominent real estate developer in Mumbai, Runwal Group has been at the forefront of providing quality construction homes and special NRI benefits for the patrons from abroad who wish to settle down in the country later. The company has been promoting NRI real estate investment in India for a very long time.

Key Factors You Should Know Before Investing as an NRI:

If you are an NRI and wish to invest in Mumbai’s real estate sector, there are a few essential elements that you should consider easing the process of your investment. Following are the important factors you should be aware of:

  • Forex & Tax Benefits on Investment:

    Make sure you follow the rules outlined in the Foreign Exchange Management Act of India (FEMA). NRIs with Indian passports are eligible to participate in the real estate market without obtaining RBI authorization. When investing in real estate, Indian laws and taxation regulations must be observed, and all loans requested in India must be repaid in rupees. Understanding the tax incentives provided by the Income Tax Act is crucial because you can use them to prevent double taxation and lessen your tax burden.

  • Eligibility:

    Only investments in residential or commercial properties are permissible for NRIs. They are ineligible to invest in any type of farmland or farmhouse, even those used for farming. However, they have the right to inherit these assets or receive them as gifts. The court in your jurisdiction may, in exceptional circumstances, grant a request to invest in these limited assets, but such requests are only considered on an individual basis.

  • Property Type:

    NRIs can buy both commercial and residential projects in Mumbai or any other city. They are not permitted to purchase any farmland, agricultural land, or plantation property unless it is a gift from another person or something they inherit. However, if you want an exemption to be made in your circumstance, you can petition to the RBI. Finally, the RBI does not apply any regulations for inherited or gifted real estate.

  • Legal Advice:

    In the case of long-distance communication and procedure handling, the NRIs can give Power of Attorney (POA) to someone in India. A POA or Power of Attorney is a letter or document that enables someone to act and make decisions on behalf of the NRI. If an NRI is unable to travel to the country in order to take part in real estate transactions, he or she must make sure that Power of Attorney is granted to an appropriate individual or organization to act on his or her behalf. The document must also be properly registered in order to prevent fraud and disagreements regarding it. If you are unable to be physically present, your POA will be able to sign documents, tour the property, and represent your interests.

  • Reputed Builder:

    It is crucial to select a builder who has a stellar reputation in the real estate sector if you are an NRI. You must be able to trust the builder you decide to work with because you might not be physically present to inspect the building’s condition or quality. A professional builder will also possess the necessary clearances and certificates, which can hasten the home-buying procedure.

  • Market Analysis:

    For a strong return on investment, buying a home with a high appreciation potential is essential. For instance, e-commerce and IT-related enterprises have experienced a tremendous growth in metro cities like Mumbai giving excellent returns on investment. You may want to think about hiring a realty advisor if you want to stay informed about Indian real estate trends and the best up-and-coming areas to invest in. For greater safety and peace of mind, these advisers may also make sure that you receive property management services in every way.

  • Site Visits:

    Allow you to see every ongoing or completed project in its actual setting. Many times, problems with projects go unnoticed by their customers because they are not disclosed to them. This could undo all your planned work and result in losses since the project might not be able to generate any revenue at all. Processing your transactions eliminates any potential for errors or problems once you are satisfied with the project’s progress or status. In case you are not able to physically witness the projects, you can always opt for a virtual tour.

Helping You Make an Informed Decision:

NRI Real Estate investment in Mumbai is destined to generate a lot of ROIs and offer returning NRIs an opportunity to settle down in India comfortably. With the above-mentioned guidelines, the India realty market can prove very rewarding to NRIs.

So, if you are looking to make an investment in India, especially Mumbai, seek out the right opinion and ensure that all the regulations are followed to minimize the risks of encountering unnecessary challenges. Happy Investing!


1. How can NRIs invest in real estate in Mumbai?

There’s a circular through which NRIs can invest in India. RBI (Reserved bank of India) allows NRIs to invest in residential and commercial property.

2. What are the rules for NRI investment in Mumbai?

There are no as such rules for NRIs to invest in India. RBI has issued a general permission for NRI investment. But NRIs can’t buy farmhouses, agricultural land, or plantation land in India.

3. What are the tax benefits for NRI in India?

An NRI can claim a standard deduction of 30%. They can also deduct property taxes and benefit from an interest deduction from a home loan.

4. What are the RBI Guidelines for NRI Buying Property in India?

RBI has issued a permission for NRIs to invest in Indi. Although all the necessary guidelines can be found on their official website.