India is one of the very few countries where their nationals who become residents of other countries, actually continue to invest in their homeland. Every year nearly 25 lakhs of Indians choose to immigrate abroad. However, they still retain a strong bond with their hometowns, even going so far as to buy property there. This article deals with the delicate ambiguity of NRI investment in Indian real estate and why NRIs should consider investing in flats in Chennai as an immovable property asset for their future. 

Let’s first see the benefits NRIs get while investing in Indian properties. 

Foremost, there is no limit on the number of properties that an NRI can purchase in India. They are free to own multiple properties, both residential and commercial, and enjoy the rental income from them. 

Second, when compared to investing in their country of residence, investing in India offers high returns on a low capital. 

Third, they have the added benefit of claiming tax deductions on the income they earn from their properties in India. 

All these factors and more make it worthwhile for NRIs to invest back in their homeland, especially in residential properties that guarantee easy and high returns.

Building trust in Developers to encourage NRI investment

India has always faced the problem of delayed and discontinued projects which has caused financial trouble for so many people. This was a huge cause for concern for NRIs as they didn’t want their finances and potential assets to get tied up in legal litigation. But this fear is now dispelled by RERA, as all real estate developers are expected to have 70% of their capital money meant for each project in an Escrow account, and the money will be released stage-wise. This ensures that the project doesn’t get delayed or stopped altogether for financial reasons. This kind of financial planning and transparency has boosted the NRI investment in flats in Chennai. 

Tax benefits on NRI investments

Any rental income or profits made from the sale of a property in India is still considered as income and is subject to taxation. This is regardless of the individual’s resident or NRI status. They have full rights to earn rental income and short-term and long-term gains. But there is a 30% standard TDS from the rental income, and only the remaining is considered as taxable income, which is then taxed as per norm. 

When an NRI sells their property within 2 years of purchase, it is considered as Short-term capital gains and will be taxed as per the usual slab rate. However, if the property is sold after 2 years of purchase, it is considered as long-term gains and will be taxed at 20% post indexation.

Home loan options for NRIs

Even as an NRI, one might need to apply for a home loan to buy property. Some of the banks offer interest rates as low as 6.5%, and people can apply for home loans that are about 80% of the property value. The loan repayment tenure can also be up to 30 years. The pandemic is the right time to avail of a home loan to buy flats in Chennai, as the interest rates are low, and there are plenty of tax benefits. 

Investment options for NRIs

Being an NRI most of the process is done online and very few have the luxury of coming in person to see the property before closing the deal. To ease their minds, it is recommended to deal with only trustworthy real estate developers. Dealing directly with the seller, gives the entire process much-needed transparency, as opposed to dealing with a broker or other middlemen. A reputed developer will also have an expert team guiding them to the perfect property along with speeding up financial aid, partnered with nationalised banks. 

Lifestyle Housing is a premium real estate developer of luxury apartments in Chennai. We guarantee high rental income with luxury amenities and location advantage that attracts high-end renters easily. Our 3 BHK flats for sale in Chennai are popular for families with children. Get in touch with our real estate experts who will guide you through the full process. 


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