For many Non-Resident Indians, owning a home back in Pune isn’t just an investment decision — it’s an emotional one. It’s a flat for ageing parents, a future retirement base, or simply a way to stay rooted to a city that’s changed dramatically since they left. But buying property from abroad comes with its own set of questions: What documents do you actually need? Can you fund it entirely from overseas earnings? And when you eventually sell, how much of that money can you legally bring back?
Here’s a clear breakdown to help NRIs navigate the process with confidence.
Can NRIs Buy Property in India?
Yes. Under the Foreign Exchange Management Act (FEMA), NRIs and Overseas Citizens of India (OCIs) can freely purchase residential and commercial property in India without seeking special RBI permission. The only restriction is on agricultural land, farmhouses, and plantation property, which NRIs generally cannot purchase.
Documents You'll Need
- Valid Passport (as proof of NRI/OCI status)
- PAN Card (mandatory for any property transaction in India)
- OCI/PIO Card, if applicable
- Power of Attorney (POA), if you can’t be physically present for registration — this allows a trusted representative in India to complete the transaction on your behalf
- Address Proof — both overseas and Indian, if available
- Passport-size photographs
- NRE/NRO Bank Account details, for fund transfers
How Can You Fund the Purchase?
NRIs can pay for property purchases through:
- NRE (Non-Resident External) Account — funds are freely repatriable
- NRO (Non-Resident Ordinary) Account — for managing India-based income, with repatriation subject to certain limits
- Home Loans from Indian Banks — most nationalised and private banks offer NRI-specific home loan products, often up to 80% of property value, though eligibility and interest rates vary by income source and country of residence
Cash transactions are not permitted — all payments must route through banking channels, which also creates a clean paper trail for future tax and repatriation purposes.
Power of Attorney: A Practical Necessity
Since most NRIs can’t be present for every step — site visits, agreement signing, registration — a registered Power of Attorney in favour of a trusted family member, friend, or legal representative is common practice. This POA should be notarised in the country of residence and, in many cases, attested by the Indian consulate/embassy for it to hold full legal validity in India.
Tax Implications NRIs Should Know
- TDS on Sale: When an NRI sells property in India, the buyer is required to deduct TDS (typically 20%+ surcharge/cess for long-term capital gains) before making payment.
- Capital Gains Tax: Applicable on sale of the property, with exemptions available under certain sections if proceeds are reinvested in another property or specified bonds.
- Repatriation Limits: Sale proceeds can generally be repatriated up to USD 1 million per financial year (subject to RBI guidelines and applicable tax clearances), provided the property was originally purchased through legitimate banking channels.
Why Pune Continues to Attract NRI Buyers
Pune’s combination of strong rental demand (driven by IT and education hubs), relatively affordable pricing compared to Mumbai, and well-planned infrastructure across corridors like Sinhagad Road, Kothrud, and Aundh make it a consistently attractive market for NRIs looking for both long-term appreciation and eventual personal use.
Making the Process Simpler
The single biggest source of stress for NRI buyers isn’t the paperwork — it’s coordinating everything remotely, across time zones, without someone reliable on the ground. Working with a developer who provides virtual site tours, digital documentation support, and a dedicated NRI relationship point-of-contact removes most of that friction.
At Probha Group, we regularly assist NRI buyers with end-to-end support — from virtual walkthroughs and RERA-compliant documentation to coordinating with your Power of Attorney holder for a smooth, remote-friendly transaction.
Planning to invest in a home in Pune from abroad? Get in touch with Probha Group’s NRI desk for a guided, hassle-free buying experience.
