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Investment & Financial Planning

Top 8 Mistakes NRIs Should Avoid When Buying Property in India

Ritesh JainBy Ritesh Jain |Last Updated: December 20, 2025
Top 8 Mistakes NRIs Should Avoid When Buying Property in India
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  2. Investment & Financial Planning
  3. Top 8 Mistakes NRIs Should Avoid When Buying Property in India
  4. Reading Time: 10 mins

For NRIs, investing in the Indian real estate market is a profitable opportunity. The growing Indian property market, fueled by commercial development, urban expansion, and favorable policies of the government, provides NRIs a chance to participate in high returns.

However, from abroad, handling the complexities of the Indian property market can be difficult for NRIs. To help you out in this and make informed decisions, this blog consists of the top 8 mistakes that NRIs should avoid when buying property in India. So, whether you are planning to buy commercial or residential property, avoiding these mistakes can save you money, legal hassle, and time.

Ritesh Jain
Ritesh Jain(Tax Expert)

Mr. Ritesh has 20 years of experience in taxation, accounting, business planning, organizational structuring, international trade financing, acquisitions, legal and secretarial services, MIS development, and a host of other areas. Mr Jain is a powerhouse of all things taxation.

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Frequently Asked Questions

Yes, NRIs can get home loans in India. Banks like ICICI, SBI, HDFC, and Axis Bank, up to 80% of the property value provides home loans to NRIs. In this, the interest rate ranges between 8.5 to 9.5%.

The stamp duty and registration costs vary by state and gender. Generally, it ranges between 5 to 8% of the property value.

In most cases, you do not need to visit India to buy property. For this, you can hire a Power of Attorney (POA) or a lawyer to represent you.

No, you cannot sell inherited agricultural land without the permission of the RBI. You can hold it, but as an NRI, you cannot sell or purchase additional agricultural land.

You can continue to hold that property. However, now, instead of your resident savings accounts, the rental income will go to your NRO account. Additionally, when you sell the property, you can only repatriate up to USD 1 million per financial year if you purchased it with resident funds.