Buying a Home in Pune as an NRI: What to Check Before You Book

Buying a home in India from abroad adds questions that a resident buyer does not face: what the rules allow, how the money must move, and how to check a project you cannot visit often. Here is what the Reserve Bank of India says in its own FAQ, then the checks that apply to any buyer. Income figures and tax rates depend on your circumstances, so get them from your adviser. Rules also change, so read the current RBI text and speak to a lawyer or chartered accountant before you commit.

What the RBI Says About NRIs Buying Property

The RBI's FAQ on the purchase of immovable property, updated on 6 April 2023, says an NRI or OCI can buy property in India other than agricultural land, a farm house or plantation property. This is a summary of that page, not legal advice.

How Payment Has to Be Made

• Payment must be received in India through banking channels.
• It can come from inward remittances or from an NRE, FCNR(B) or NRO account.
• Travellers' cheques and foreign currency notes are not allowed.
• Applicable taxes and levies must be paid in India.

Buying With a Spouse Who Is Not an NRI

The RBI FAQ says a spouse who lives abroad and is not an NRI or OCI may acquire one immovable property, other than agricultural land, a farm house or plantation property, jointly with the NRI or OCI spouse. The FAQ attaches conditions to this, so read it and ask your lawyer how it applies to you.

Gifts and Inheritance

The same FAQ allows an NRI or OCI to receive a gift of property, other than agricultural land, a farm house or plantation property, from a relative who is a resident, an NRI or an OCI. It also covers inheriting immovable property. The conditions differ from a purchase, so read the FAQ and take professional advice.

How an NRI Buys a Home in Pune, Step by Step

1. Check you are eligible. Confirm your NRI or OCI status and that the property is not agricultural land, a farm house or plantation property.
2. Shortlist and verify the project. Check the project and tower on the MahaRERA website, then compare homes by RERA carpet area.
3. Decide how you will pay. Choose the inward remittance, NRE, FCNR(B) or NRO route and keep the bank record of every payment.
4. Get the cost sheet and the draft agreement in writing. Have a lawyer read the agreement for sale and check the title and approvals.
5. Sort out how you will sign. Ask your lawyer how the agreement and registration can be completed if you are abroad, including whether a power of attorney is needed and how it must be executed.
6. Pay and register. Pay in the stages the agreement sets out, through banking channels, and register the agreement in India after the stamp duty is paid. Ask your lawyer for the current rates and process.
7. Plan for later. If you may sell one day, speak to a chartered accountant about tax and repatriation before you buy, not after.

Wherever you live, the RBI rules above apply to NRIs and OCIs. The country you live in may have its own tax and reporting rules for property held abroad, so ask an adviser who knows both countries.

Selling Later and Sending the Money Abroad

The same FAQ sets conditions on repatriating sale proceeds. For residential property it restricts repatriation to not more than two such properties, and it allows repatriation up to USD 1 million per financial year for eligible persons. The property must have been acquired under the foreign exchange rules in force at the time, and paid for through banking channels or from an FCNR or NRE account. Read the full FAQ for the conditions and take professional advice on your own case.

Checks to Make Before You Book

• MahaRERA record: verify the project, its tower numbers and its possession date on the MahaRERA website. Our guide to RERA registered and approved projects explains what the registration covers.
• Carpet area: compare homes by RERA carpet area, not by super built-up area.
• Approvals and title: have a lawyer check the title and the statutory approvals.
• Specification sheet: ask for the brands and finishes in writing.
• Possession and payment plan: compare the stated possession with the MahaRERA filing, and understand the payment schedule.
• Total cost: ask for a full cost sheet that includes stamp duty, registration, taxes, parking and maintenance.
• If you will not live there: ask who will look after the home, and what the society charges while it is empty.
• Who acts for you: ask what the sales team can handle on your behalf and get it in writing. Do not assume it.

Where to Start in Pune

The 24K projects are in Baner, Pimple Nilakh, Bavdhan and near Hinjewadi (also spelled Hinjawadi). See residential projects in Pune for every project, and our guides to apartments in Baner, Pimple Nilakh and luxury homes in Hinjewadi for the areas. If you want to see a finished home, 24K Atria in Pimple Nilakh and 24K Stargaze in Bavdhan are ready to move. Check each project page and its MahaRERA record for the current position. 24K does not describe any services specific to NRI buyers.

FAQs

1. Can an NRI buy a home in Pune?
The RBI's FAQ on the purchase of immovable property says NRIs and OCIs can buy property in India other than agricultural land, farm houses and plantation property. Rules can change, so read the current RBI text and speak to a lawyer or chartered accountant before you commit.

2. Can an NRI buy agricultural land or a farm house?
No. The RBI FAQ excludes agricultural land, farm houses and plantation property from the purchase route it describes.

3. How can an NRI pay for a home?
The RBI FAQ says payment must be received in India through banking channels, from inward remittances or from an NRE, FCNR(B) or NRO account. It says payment must not be made by travellers' cheque or foreign currency notes, and that applicable taxes and levies must be paid in India.

4. Can an NRI send the sale proceeds abroad?
The RBI FAQ sets conditions. For residential property it restricts repatriation of sale proceeds to not more than two such properties, and it allows repatriation up to USD 1 million per financial year for eligible persons. The property must have been acquired under the foreign exchange rules and paid for through banking channels or from an FCNR or NRE account. Read the full FAQ and take professional advice before you rely on this.

5. What should an NRI check about a project before booking?
Check the project and tower on the MahaRERA website, the RERA carpet area, the approved plan, the specification sheet, the possession date against the MahaRERA filing, the payment schedule and the total cost. Get the answers in writing.

6. Does 24K offer services for NRI buyers?
24K does not describe any NRI-specific services. Ask the sales team what help it offers and get it in writing.

7. Can an NRI buy a home jointly with a spouse who is not an NRI?
The RBI FAQ says a spouse living abroad who is not an NRI or OCI may acquire one immovable property, other than agricultural land, a farm house or plantation property, jointly with the NRI or OCI spouse, under the conditions it sets out. Read the FAQ and ask your lawyer how it applies to you.

8. Can an NRI receive a property as a gift or inheritance?
The RBI FAQ allows an NRI or OCI to receive a gift of property, other than agricultural land, a farm house or plantation property, from a relative who is a resident, an NRI or an OCI, and covers inheriting immovable property. The conditions differ from a purchase, so read the FAQ and take professional advice.

9. Do I have to be in India to buy a home in Pune?
The RBI FAQ covers who can buy and how to pay, not how the agreement is signed. Ask your lawyer how the agreement and registration can be completed if you are abroad, including whether a power of attorney is needed and how it must be executed.

10. I live in the US, UK or UAE. Do the same rules apply?
The RBI rules described here apply to NRIs and OCIs wherever they live. The country you live in may have its own tax and reporting rules for property held abroad, so ask an adviser who knows both countries.