- NRIs can buy non-agricultural residential and commercial plots.
- Check that the land has valid non-agricultural status, not just a seller's promise.
- Check layout approval and that building permission can be obtained.
- Plot loans for NRIs are available from some lenders on stricter terms.
On this page
Can NRI buy land in India: which land?
| Land | Can an NRI buy? |
|---|---|
| Residential plot in an approved layout | Yes |
| Commercial plot | Yes |
| Agricultural land | No |
| Farmhouse or plantation | No |
How do you check non-agricultural status?
Ask for the conversion order or the land record showing non-agricultural use, and verify it with the revenue authority, not from a photocopy. In some states the process for conversion has changed recently, so a lawyer should confirm what proof applies in that state. Land still shown as agricultural cannot be bought by an NRI.
Layout and building approvals
- Layout approved by the planning authority.
- Roads, open spaces and plot boundaries as per the layout.
- Confirmation that building permission can be obtained for the plot.
- No reservation of the plot for public purposes in the development plan.
NRI open plot purchase: payments and loans
Pay through NRE, FCNR or NRO accounts. Some banks offer plot loans to NRIs, often with a condition to build within a set period. See funding a purchase.
Mistakes NRI plot buyers make
- Buying in a layout sold as approved without checking the approval number with the planning authority.
- Relying on a promise that conversion is pending.
- Not checking whether the plot is reserved for a road or public use in the development plan.
- Leaving a vacant plot unfenced and unvisited for years, which invites encroachment.
Plot from an individual or from a developer layout?
Buying from an individual means checking the full title chain and the conversion of that specific survey number. Buying in a developer's layout means also checking the developer's title to the whole layout, the layout approval and whether common facilities are handed over. In both cases, ask for the approval documents, not just the sale brochure.
Building on the plot
Before buying, confirm that building permission can be obtained for what you plan, including the permitted floor area and setbacks. Some plot loans require construction to start within a set period, so check the timeline against your plans.
Before you buy a plot
Get a title search over thirty years and check encumbrances. For farmland questions, see can NRI purchase land in India and farmhouses and farm plots.
Founder and Managing Partner, VIVS Legal. BLS, LL.B, LL.M, PGDBM, JAIIB.
