What Can NRIs Buy in India? The 2026 Rules & Permissions Guide
The Direct Answer
As of 2026, NRIs and OCIs can buy any residential or commercial property in India without RBI permission. There is no limit on the quantity. However, you strictly cannot buy agricultural land, plantation properties, or farmhouses, unless you inherit them. Paying for allowed properties must be done via NRE/NRO accounts or direct remittance; payments via traveler's cheques or foreign currency notes are illegal.
Quick Compliance Check
Before signing any deed, start your paper trail. Ensure the payment comes from your NRE (repatriable) or NRO (non-repatriable) account. Direct cash payments or payments from a relative's resident account can trigger FEMA penalties and block future repatriation.
The Allowed Matrix
The Foreign Exchange Management Act (FEMA) is binary on this. Here is what you can and cannot touch.
| Property Type | Allowed? | Notes |
|---|---|---|
| Residential Apartment | ✅ Yes | No quantity limit. Can be rented out. |
| Residential Plot | ✅ Yes | Must be non-agricultural (NA) land. |
| Commercial Office/Retail | ✅ Yes | Great for rental yield. |
| Agricultural Land | ❌ NO | Strict prohibition. Attempting to buy via a "power of attorney" holder is a common scam. |
| Farmhouse | ❌ NO | Even if it's for "personal use." |
| Plantation Property | ❌ NO | Tea, coffee, rubber plantations are off-limits. |
The "Inheritance" Exception
You can own agricultural land if you inherit it from a resident Indian. However, you cannot buy it. If you inherit it, you can only sell it to a resident Indian citizen, not another NRI.
Frequently Asked Questions
Can I buy agricultural land if I plan to convert it?
No. You must buy land that is already converted (has a Sanad or NA order). Buying agricultural land with the intent to convert it later violates FEMA because the transaction itself (buying ag-land) is prohibited at the point of sale.
Can I buy property jointly with a Resident Indian?
Yes. You can buy jointly with a resident Indian (like a sibling or parent). However, the payment should be proportional to ownership, or cleanly documented as a loan/gift to verify the money trail for tax purposes.
Can I accept a property as a gift?
Yes, from a relative (as defined by the Companies Act). But if an NRI receives agricultural land as a gift, it is only permitted if the donor is a Resident Indian. An NRI cannot gift agricultural land to another NRI.
Kanav Arora
Real Estate Investor
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