FEMA restrictions on property acquisition, FDI in real estate development, RERA compliance, title due diligence, lease structuring and stamp duty advisory for foreign companies and NRIs investing in Indian real estate.
Short, direct, on the record.
A foreign company can acquire property in India only through its Indian subsidiary or branch office for its business use. Direct acquisition by a foreign entity is not permitted under FEMA. FDI in real estate development (construction, townships) is allowed at 100% under automatic route subject to minimum capitalisation, area and timeline conditions.
FDI in construction development requires: minimum capitalisation of USD 5 million (wholly owned subsidiary) or USD 10 million (JV), minimum floor area of 20,000 square meters for serviced housing plots, completion within 5 years from date of each building approval, and the foreign investor cannot repatriate original investment before 3 years from minimum capitalisation.
No. NRIs and OCIs cannot acquire agricultural land, plantation property or farmhouse in India. They can only acquire residential and commercial property. Agricultural land can only be acquired by NRIs through inheritance (not through purchase or gift). RBI specific approval is required for any agricultural land transaction involving NRIs.
RERA (Real Estate Regulation and Development Act, 2016) regulates real estate projects and protects homebuyers. It applies to all real estate transactions including those by foreign investors. Developers must register projects, maintain escrow accounts and deliver projects on time. Foreign investors in under construction projects are entitled to RERA protections including refund with interest for delays.
Share the investment type, location, intended use and the investor profile for a preliminary assessment.