v256.0 · real-estate · IN · verified 2026-04
India real-estate market
Real-estate market in India for foreign buyers — ownership rules, residency-by-investment, average prices, mortgage availability, transaction costs, rental yields, top brokerages, recent regulatory changes.
Market size
INR 80 lakh crore (USD 960B) residential market (2024)
Currency
INR
Foreign-buyer access
NRIs (Non-Resident Indians) + OCIs (Overseas Citizens of India) CAN purchase residential + commercial property...
Rental yields
Mumbai South: 2-3% gross · Bengaluru: 3-4% · Pune/Hyderabad: 3.5-4.5% · Tier-2 cities (Indore, Ahmedabad): ...
Ownership rules + RBI pathway
| Foreign-buyer rules | NRIs (Non-Resident Indians) + OCIs (Overseas Citizens of India) CAN purchase residential + commercial property freely (no agricultural land/plantations/farmhouses) · PIOs same as OCIs · Foreign nationals (non-NRI/OCI) only via FEMA-approval route |
| Residency-by-investment | No formal RBI · OCI card route for foreign-origin Indians (lifetime visa-like, not citizenship) · Property purchase enables OCI conversion in some cases · Employment-based visas via FRRO |
| Regulator | RERA (Real Estate Regulatory Authority — state-level, established under Act 2016) · RBI (FEMA for foreign-buyer rules) |
Average prices
| Capital city | Delhi NCR prime (Lutyens/Vasant Vihar): INR 25-50K/sqft (USD 27-54K/sqm) · Gurgaon DLF/Golf Course: INR 15-30K/sqft · Noida sector areas: INR 8-18K/sqft |
| Secondary markets | Mumbai South: INR 50-80K/sqft (USD 54-86K/sqm — among India's highest) · Bandra/Worli: INR 30-50K/sqft · BKC: INR 35-60K/sqft · Bengaluru: INR 8-20K/sqft · Pune: INR 7-15K/sqft · Chennai: INR 10-20K/sqft · Hyderabad: INR 7-15K/sqft · Goa: INR 10-25K/sqft |
| Rental yields | Mumbai South: 2-3% gross · Bengaluru: 3-4% · Pune/Hyderabad: 3.5-4.5% · Tier-2 cities (Indore, Ahmedabad): 4-5% · NRI rental TDS 30% withholding (lower with TRC) |
Mortgage + transaction costs
| Mortgage availability | NRI mortgages widely available via SBI, HDFC, ICICI, Axis, Bajaj Finserv · 60-80% LTV · Rates 8.5-10.5% (2024) · 5-30 year terms · Foreign-national mortgages essentially unavailable |
| Transaction costs | Stamp Duty 3-7% state-specific · Registration 1% · GST 1-12% (under construction only) · Legal INR 25K-2L · Total ~5-10% for resale; 8-15% for new with GST |
| Top brokerages | 99acres, MagicBricks, Housing.com (portals) · Anarock, JLL India, Knight Frank India, CBRE India, Cushman & Wakefield · Square Yards (NRI focus) |
Recent changes (2023-2026)
2024: RERA enforcement strengthened (state-level, e.g. Maharashtra MahaRERA) · CRS 7-year holding for principal-residence exemption · India-Mauritius DTAA Protocol March 2024 (PPT added) · GST council periodic adjustments · NRI repatriation cap USD 1M/year for sale proceeds
Strengths
- NRI + OCI free purchase of residential + commercial
- RERA Act 2016 brought regulatory clarity
- Strong long-term capital appreciation in metros
- NRI mortgage market deep + competitive
- Growing tier-2 city investment opportunities (REITs since 2019)
- OCI pathway via Indian-origin link
Drawbacks
- Foreign nationals (non-NRI/OCI) effectively closed market
- NRI rental TDS 30% withholding (DTAA-mitigable)
- Rental yields among world's lowest in metros
- GST + Stamp Duty under-construction can add 15%
- Some developers delivery delays despite RERA
- NRI repatriation cap USD 1M/year sale proceeds
Source: official India regulator page · Last verified 2026-04
See also: India country profile · real-estate atlas