As an NRI real estate investor, if you are looking to invest in residential plots in Coimbatore, it is a good way to diversify your investment portfolio. India’s real estate industry especially in metro cities has drawn NRI real estate investors over the years because of its strong infrastructure, economic growth, retirement income avenues, and good investment rewards.
Investing in real estate can become difficult due to market and economic developments and you need to exercise diligence before investing in real estate. Coimbatore is the ideal location for NRIs looking to purchase real estate in India. We have included some insightful information and helpful hints in our comprehensive guide to help NRIs make wise choices when purchasing real estate in 2025 in metro cities of south India.
Key Benefits of NRIs real estate investments in residential plots in Coimbatore
- Non-resident Indians (NRIs) often return to their homeland for vacations, investments, or retirement and most important of all they enjoy the value of Indian currency. Choosing to invest in Indian properties gives them a better return on their savings and also makes it affordable. Over time, these real estate investors get property appreciation and also rental income if they choose to rent out especially if your investment is in metro cities. Investment in residential plots in Coimbatore is a good choice to make.
- Real estate yields more consistent returns than gold, fixed deposits, and the volatile stock market. It increases in value over time, producing profits through resales or rental income. The alternative investment options could have variable or constrained returns. The steady demand and rising prices in the Indian real estate market have the potential to outperform inflation and yield higher returns than most of the asset classes. This proves to be a fruitful investment for NRI investors in real estate and with the current boom in metro cities of South India it is indeed a good opportunity.
- The development in the suburbs of Coimbatore is drawing good investment and is yielding a consistent return over the last few years. Saravanampatti, Kovaipudur, Vellakinar, and Thudiyalur are a few areas to look out for by NRIs. Leading real estate projects are coming up in these areas and are offering residential plots at affordable prices. G Square Aura in Vellakinar, G Square Amethyst in Thudiyalur, G Square Urbanize in Saravanampatti, and G Square World in Kovaipudur are some of the key property areas to consider investing in for buying residential plots.
Types of Properties NRIs Can Buy in India
NRI investors for real estate have the opportunity to purchase various types of properties in India, subject to certain guidelines and conditions:
NRIs are allowed to purchase residential properties such as houses, apartments, villas, bungalows, and farmhouses, whether for personal use or for investment purposes. There is no limit on the number of residential properties NRIs can acquire in India.
NRI real estate investments can also extend to commercial properties i.e. office spaces, retail outlets, warehouses, and industrial units. These properties can be rented out for income generation or used for business operations.
NRI investors are not permitted to buy agricultural land in India, except under certain circumstances. They can inherit agricultural land, and in certain cases, the Reserve Bank of India (RBI) may grant permission for the purchase of agricultural land.
NRI investors for real estate can purchase plantation properties, such as tea or coffee estates, only by obtaining prior approval from the Reserve Bank of India (RBI).
Necessary Documentation for Buying Property in India for NRIs
Following are the documents that the NRIs need to furnish:
- PAN Card
- Aadhaar card
- Electricity bills
- Passport
- Salary slips
- Income Tax Returns
- Application for a home loan
- Power of Attorney if unable to be present in person for a purchase transaction
A checklist for NRIs real estate investors:
- Thoroughly check eligibility for home loans and current interest rates. As an NRI you can get up to 80% financing.
- Understand tax implications, the long-term capital assets are taxed at 20%, and you may be eligible for deductions under Section 80C-80TTA.
- You can send funds to an NRO account for easy payments to vendors in India.
- Exercise due diligence and ensure all property documents are verified, including KYC, payment plans, tax implications, and legal formalities.
- Have a trustworthy local assistant to guide you through the process for a smooth investment experience.
FAQ
Do NRIs need to pay tax for a property sale in India?
The standard TDS on property sales for NRIs is 20%. If the property is sold before completing two years from the date of purchase, a higher TDS rate will apply.
Are NRI investors eligible for housing loans in India?
Yes, NRIs are eligible for housing loans in India. Eligibility criteria may vary between lenders. A steady income, a good credit history, and necessary documents like passports, ID proof, foreign address proof, and income proof are good to go to apply for loans.
What are the legitimate requirements for NRI investors buying property in India?
NRIs must adhere to the rules set by the Reserve Bank of India (RBI) and the Foreign Exchange Management Act (FEMA). They should have a PAN card and an NRI status certificate, and the property purchase complies with Indian land laws.
