NRIs holding Indian passports – No permission required.
NRIs holding foreign passports – Intimation to RBI via form IPI – 7 within 90 days of purchase of property or final payment of consideration Funds through NRE / NRO accounts.
Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India
Repatriation of proceeds from sale of residential property purchased on or after 26th May 1993 is allowed.
The RBI will consider repatriation of the consideration amount remitted in foreign exchange for the acquisition of 2 properties. The sale has to have taken place after 3 years from the date of final purchase deed or from the date of final payment.
Application of repatriation (IPI – 8) has to be done within 90 days of the sale of the property.
NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.
Some rules related to this are subject to changes from time to time.
RENTAL RETURNS – The rental returns on an investment in Residential property in Chennai is 5% – 6% p.a.
Conservative estimate of appreciation on an investment in property in Chennai is about 20% p.a. NRIs start to gain by investing in Real Estate when compared to the investments on the NRNR / FCNR deposits.