I. PERMISSION FOR PURCHASE OF RESIDENTIAL PROPERTY / COMMERCIAL PROPERTY.

• 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.

II. SALE OF PROPERTY

• Property held by NRIs in India can be sold. No permission is required from the Reserve Bank of India.

III. REPATRIATION OF SALE PROCEEDS

• 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.

IV. INCOME FROM PROPERTY

• NRIs can let out immovable property in India. The rental income from the investment has to be credited to the NRO account.
• Subject to changes from time to time.
• E. & O.E.

V. RETURN ON INVESTMENT

• RENTAL RETURNS – The rental returns on an investment in Residential property in Chennai is 5% – 6% p.a.

VI. APPRECIATION OF PROPERTY

• 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.