NRI Guide to Buying Property in Delhi – Step-by-Step Checklist & Mistakes to Avoid

Buying property in Delhi as a Non-Resident Indian (NRI) is an attractive investment opportunity.

With high appreciation potential, rental yield, and emotional ties to the homeland, Delhi remains a hotspot.

However, navigating the Indian real estate market, especially in a metro city like Delhi, can be complex.

This comprehensive guide will walk you through the process step-by-step and highlight the most common mistakes NRIs make – so you can avoid them.

Step-by-Step Checklist for NRIs Buying Property in Delhi

Step 1: Understand Legal Eligibility

• As an NRI, you are allowed to buy residential and commercial properties in India under the FEMA (Foreign Exchange Management Act).
• You cannot buy agricultural land, plantation property, or farmhouses.

Step 2: Choose the Right Type of Property

• Decide between residential (apartments, builder floors, villas) and commercial (shops, office space).
• Assess your purpose: investment, self-use, or rental income.

Step 3: Select a Reliable Developer or Resale Option

• Prefer RERA-registered developers and properties.
• For resale, ensure property documents are verified and title is clear.

Step 4: Appoint a Power of Attorney (PoA)

• If you can’t be physically present, appoint a trusted family member or legal representative with registered PoA to act on your behalf.
• Ensure PoA is specific to property transactions and notarized/apostilled in your country of residence.

Step 5: Get Your Documentation in Order

• Valid Indian Passport & Visa/OCI Card
• PAN Card (mandatory for transactions)
• Overseas Address Proof
• Passport-size photographs
• Power of Attorney document (if applicable)

Step 6: Financing Your Purchase

• NRIs can avail of home loans from Indian banks in INR.
• Repayment must be made through NRE/NRO/FCNR accounts.
• Compare interest rates and eligibility criteria across banks.

Step 7: Check Property Title and Approvals

• Get legal due diligence done by a property lawyer.
• Ensure clear title, approved building plans, occupancy certificate, and no dues.

Step 8: Register the Property

• Property must be registered with the Sub-Registrar of Delhi.
• Stamp duty in Delhi is 4%-6% depending on gender and ownership type.
• Registration requires your physical presence or a PoA holder.

Step 9: Manage Taxes and Compliance

• Rental income is taxable in India and must be declared.
• TDS is applicable for property transactions.
• File income tax returns in India if you have taxable income.

Step 10: Property Management Post-Purchase

• Hire a reliable property manager or real estate agent.
• Regularly check on the property or get updated via PoA.
• Keep utility bills and property taxes paid on time.

Top Mistakes NRIs Must Avoid

1. Skipping Legal Due Diligence
   1. Not verifying the title deed, encumbrances, or RERA registration.
2. Trusting Unverified Agents or Builders
   1. Always work with registered developers and agents.
3. No Power of Attorney
   1. Failing to appoint a PoA leads to delays and legal complications.
4. Ignoring Tax Implications
   1. Not planning for TDS, capital gains, or rental income taxation.
5. Buying Without Visiting the Site
   1. Try to visit or send a trusted person to inspect the site.
6. Overpaying or Falling for Schemes
   1. Cross-check pricing with local rates and avoid too-good-to-be-true offers.

Conclusion 

Investing in Delhi real estate as an NRI can be a rewarding decision if done right.

With proper planning, legal clarity, and the right partners, you can own a valuable asset that grows over time.

Follow this checklist and steer clear of common pitfalls to make a secure and profitable investment.

Stay informed, stay protected – and welcome back home with your dream property in Delhi!