Buying real estate in India, you should take into account the following advantages:

• beautiful nature and mild climate

• wide variety of offers (from exclusive and luxurious to quite modest)

• constant increase in real estate prices

• good quality of real estate and their affordable price

• constant growth in living standards

Top 5 Propertery Dealer In India For Buying Property

  1. Ansal Properties. Ltd. …
  2. India Bulls Real Estate Ltd.
  3. DLF Ltd.
  4. RR Properties in Gurgaon.
  5. Oberoi Realty Ltd.

Purchase process. Peculiarities

According to the laws of India, foreign citizens do not have the right to purchase real estate in its territory. To buy a home, you need to stay in the country for at least 183 days, it is forbidden to make transactions on a tourist visa, and a business visa is issued for only up to 181 days.

Foreigners of Indian origin, that is, those persons who were born in India or have Indian parents, grandparents, can purchase real estate. If you do not belong to this category, then you can purchase real estate only for a legal entity opened in the name of the buyer. To confirm this, it will be necessary to provide a complete list of documents provided for by the legislation of the country.

To complete a real estate purchase and sale transaction, the buyer must be personally present at all stages of the transaction, in accordance with local law. The purchase process begins with the selection of an object and a deposit payment in the amount of 10% to 12% of the total price. Further, an agreement is concluded between the parties – a memorandum of intent.

After that, you should start registering a company and opening a bank account, this process usually takes 1.5-2 months. When everything is ready, the buyer pays the full cost of the object, with 60% of the amount in the first month after signing the contract, and the remaining 40% within the next two months.

The next step is to transfer the deed to the property to the buyer, sign the general contract, in the presence of a notary. Within two months after the transaction, the buyer is obliged to submit a declaration to the tax office with a detailed description of the property in order to calculate the annual property tax.

If a foreign investor belongs to the category of persons with Indian origin, then only a foreign passport is required to complete a real estate purchase and sale transaction. The acquisition process is the same as for legal entities, with the exception of opening a company and a bank account. However, the client will be fingerprinted and entered into a special register for security purposes.

You should also be extremely careful when making a transaction in India. Always demand that the contract be translated into your native language, since the risk of missing out on any nuance in a foreign language is quite high, and in a conflict situation, your version of the contract will help defend the rightness. It is also worth asking for a complete list and the amount of all fees, commissions and payments if you use the services of a real estate agent.

You should check the legal purity of the selected object, the status of the owner and the presence or absence of a mortgage. Before making any payments, check the title deeds with the owner, as there have been numerous cases of funds being transferred to the name of scammers renting property.

When buying housing that has not yet been completed, ask about the history of the developer’s company, its experience in the real estate market and the status of past properties (whether they are completed), as well as the presence of litigation related to the developer – this can be done in the press or on the Internet.

Property taxes

When making a profit from the construction or sale of real estate in India, it will be necessary to pay a tax in the amount of 5-10% of the total profit. Foreigners are required to pay this tax only if they stay in the country for more than 180 days. Income tax is paid mainly only by entrepreneurs, since the non-taxable minimum is 10,000 rupees. The tax will be 30% if the income from real estate is more than 25,000 rupees and 66% if the income is more than 100,000 rupees.

When purchasing real estate, a foreign investor is obliged to independently submit a declaration to the tax office to calculate the annual property tax. The same declaration is provided at the end of all construction work at the facility. The volume of taxes varies greatly, is set by the governments of specific states and depends on various economic and social factors. For example, in Delhi, the land tax is 3.5%.


In India, mortgage loans are issued by various organizations. Chief among them is the National Housing Bank, whose goals are to regulate mortgage lending in the country and create a full-fledged lending system. 

In addition, mortgage loans are issued to associations of individuals in public organizations. Such organizations are not banking structures and there are 354 of them in the country. These companies provide about 95% of all mortgage loans in the country.

Most of the loans in India are provided on standard terms:

• age limit up to 60 years

• repayment period up to 15 years

• the loan is repaid in monthly installments

• the borrower also pays 2% tax on interest

• the borrower pays for servicing the loan

• in addition, banks withhold 1% of the amount loan administration fee and 0.5-1% application fee.

Costs for maintenance or accompanying services

Maintenance of real estate in India while living in it will cost about €300 per month, including utility bills and taxes. There is also an annual property tax, the amount of which depends on the state. Insurance of acquired real estate is also obligatory, the amount of insurance is determined according to the declaration submitted to the tax service.

Community fees for a small apartment will be approximately €500 per year, and for a house – €700. There are additional costs if the house is part of a residential complex – approximately € 200 annually for cleaning and maintenance of common areas. Tariffs for energy carriers are much lower than European ones, payments are made by meters.


Please enter your comment!
Please enter your name here