Every month we get calls from Gujarati families settled in the US, UK, Canada, Australia and the Gulf who want to buy something back home in Ahmedabad. The process is not difficult, but it has more moving parts than a domestic purchase, and most of the friction comes from paperwork that could have been sorted three months earlier. Here is how it actually works on the ground.
What an NRI or OCI Holder Can and Cannot Buy
Under the general framework set by the Reserve Bank of India through FEMA, a Non-Resident Indian or an Overseas Citizen of India cardholder can purchase residential and commercial immovable property in India without needing special approval. That covers the vast majority of what people actually want: a 3BHK in Bopal, a shop on SG Highway, an office unit near Prahlad Nagar, a plot in an approved residential scheme.
What is not permitted through the general route is agricultural land, farmhouse property and plantation property. These can normally be inherited or received as a gift, but not purchased. If someone shows you a cheap parcel on the outskirts and calls it an investment, ask for the revenue records and check the land classification first. Agricultural land that has not been formally converted to non-agricultural use is a genuine trap.
These are general principles, not personalised advice. FEMA rules and their interpretation change. Confirm your specific eligibility with a chartered accountant and with your bank before you commit money.
How the Money Moves
Payment for property has to come through banking channels. In practice that means funds routed through your NRE, NRO or FCNR account, or by inward remittance from abroad. Cash payment is not an option, and travellers cheques or foreign currency handed over in India are not acceptable modes of payment for property.
- NRE account is generally used where you want the funds and eventual sale proceeds to remain freely repatriable.
- NRO account is typically used for rupee income earned in India, such as rent, and has its own repatriation conditions.
- Home loans are available to NRIs from most Indian banks and housing finance companies. The loan is sanctioned and repaid in rupees, usually serviced from an NRE or NRO account or by remittance.
Ask your bank exactly which account each tranche should come from, and keep every remittance advice. Years later, when you want to sell and repatriate, those documents are what your CA will need.
Repatriation and Tax, in Plain Terms
Two things trip people up when they eventually sell. First, repatriation of sale proceeds is allowed but is subject to conditions and limits set by the RBI, and the treatment differs depending on how the property was originally funded. Second, the buyer of your property is required to deduct tax at source on the sale consideration, and the rate applicable when the seller is a non-resident is different from the rate for a resident seller. There are also mechanisms to apply for a lower or nil deduction certificate where the actual capital gain is small.
We are deliberately not quoting percentages or ceiling figures, because these change with Finance Act amendments and depend on your residential status for that financial year, the holding period and any applicable double taxation avoidance agreement. Get a CA who handles NRI matters involved before the transaction, not after.
Power of Attorney: Get This Right
Most NRI buyers cannot fly down for every signature, so a Power of Attorney to a trusted family member is standard. A few things worth knowing:
- Execute it in front of the Indian consulate in your country of residence, or get it notarised and apostilled locally, then have it adjudicated and stamped in India.
- Keep it specific. A PoA naming the property and the exact acts permitted is far safer than a general one.
- Have your advocate draft it before you execute it abroad, so the format does not get rejected at registration.
Due Diligence That Matters More When You Are Abroad
You cannot walk the site on a Sunday afternoon from another continent, so the paper checks carry more weight.
- RERA registration of the project, and the promoter details, unit-level plan and completion timeline filed with Gujarat RERA.
- Title chain for the last several decades, verified independently by your own advocate, not the builder's panel lawyer.
- Approved plans from AUDA or AMC and the commencement certificate. Check the sanctioned floors against what is actually being built.
- 7/12 and revenue records for plotted land, confirming NA conversion where relevant.
- Encumbrance search at the sub-registrar office for existing mortgages or charges.
- For a resale flat, the society NOC, share certificate, latest maintenance receipts and property tax paid receipts.
Practical Advice on Choosing the Property Itself
NRI buyers often buy larger than they need because the rupee number looks small in dollars or pounds. Think about who will use the property. If parents will live in it, proximity to a hospital and a walkable market matters more than a rooftop infinity pool. Satellite, Vastrapur, Bopal and South Bopal work well for that. If it is a pure investment for rental, look at where the tenant demand actually is: Prahlad Nagar, Thaltej, the SG Highway corridor and Science City Road for corporate tenants, Kudasan, Sargasan and Infocity for the Gandhinagar and GIFT City workforce, Chandkheda and Motera for value-oriented buyers.
Also plan for who manages it. An empty flat deteriorates fast and a tenant with no local point of contact becomes a problem. Decide that arrangement before you buy, not after possession.
Talk to The Shape Realtor
We work with NRI buyers regularly and we are comfortable doing video walkthroughs, coordinating with your advocate and CA, and handling the on-ground follow-up while you are in a different time zone. Nothing gets rushed and nothing gets signed without you seeing the papers first. Have a look at what is available and get in touch, or browse our current listings to see what fits your budget in Ahmedabad and Gandhinagar.