An NRI or OCI can buy residential or commercial property anywhere in India, including Delhi-NCR, with no restriction on the number of properties. They cannot, however, buy agricultural land, a farmhouse or plantation property, and must navigate tax-deduction and payment-channel rules that resident buyers do not face. PropIntel’s advisory work with NRI clients across South Delhi, Gurgaon and Noida shows the same gap repeatedly: sellers’ TDS obligations are well understood, but a buyer’s own compliance steps are far less well documented.
This guide sets out what applies to an NRI purchasing property in Delhi-NCR in 2026: eligibility, TDS, documentation, financing, and a location-specific comparison between South Delhi resale stock and Gurgaon/Noida new-launch inventory, since the practical risks differ between the two.
PropIntel is a boutique real estate advisory covering acquisition advisory, due diligence and discreet transaction support across Delhi-NCR, Gurgaon, Noida and Goa. This article reflects that advisory perspective, not a portal listing service.
Information reviewed on: 21 September 2026. Recommended review date: 21 December 2026 (90 days) — TDS thresholds, FEMA remittance limits and RBI liberalised remittance scheme figures are periodically revised and should be reconfirmed before any transaction.
Key Takeaways
- NRIs and OCIs can buy residential and commercial property in India without RBI permission and without any cap on the number of units, but cannot buy agricultural land, farmhouses or plantation property except by inheritance or gift.
- As the buyer, an NRI purchasing from a resident seller must deduct TDS at 1% under Section 194-IA if the property value exceeds ₹50 lakh. This is a buyer obligation, distinct from the higher TDS rates (20–30%) a buyer must deduct when purchasing from an NRI seller.
- Payments must route through an NRE, NRO or FCNR(B) account, or by inward remittance. Cash payment and a direct foreign wire to the seller outside these channels are not compliant routes.
- A general Power of Attorney is legally risky for a purchase of this value; a Specific Power of Attorney limited to named acts (registration, possession, bank formalities) is the safer instrument when the NRI cannot be present.
- South Delhi’s resale-heavy builder-floor market and Gurgaon/Noida’s new-launch RERA-registered inventory carry different due-diligence profiles for a buyer transacting remotely, a distinction that matters more for NRIs than for resident buyers who can inspect in person.
Can an NRI Buy Property in Delhi-NCR?
Yes. NRIs and OCIs can buy residential and commercial property anywhere in India, including Delhi-NCR, without RBI approval and without a cap on the number of properties. This is governed by the Foreign Exchange Management Act, 1999 (FEMA) and the RBI’s Master Directions on Acquisition and Transfer of Immovable Property in India. The categories NRIs and OCIs cannot purchase are agricultural land, farmhouses and plantation property; these may only be acquired by inheritance or as a gift from a resident Indian relative, not by direct purchase. For a South Delhi apartment, a Gurgaon high-rise unit, or a Noida builder-floor, none of these restrictions apply.
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TDS Obligations: What an NRI Buyer Must Actually Deduct
When an NRI buys property from a resident Indian seller for more than ₹50 lakh, the NRI buyer must deduct TDS at 1% of the sale value under Section 194-IA of the Income Tax Act and deposit it with the government, the same obligation any resident buyer faces, using Form 26QB. This is frequently confused with the separate, much higher TDS obligation that applies when the seller is an NRI: in that case, under Section 195, the buyer (resident or NRI) must deduct TDS at approximately 20% on long-term capital gains or 30% on short-term gains, calculated on the gain rather than the full sale value, and must obtain a separate TAN rather than using Form 26QB. PropIntel routinely sees buyers assume the lower 1% rate applies regardless of who the seller is. Verifying the seller’s residential status before registration is a necessary first step, not a formality.
PropIntel’s companion guide, NRI Selling Property in India: 2026 Tax, TDS and Repatriation Rules, covers the seller-side obligations in detail.
Payment Channels: NRE, NRO and FCNR(B)
Purchase consideration must be paid through banking channels recognised under FEMA: an NRE (Non-Resident External) account, an NRO (Non-Resident Ordinary) account, an FCNR(B) deposit, or direct inward remittance from abroad. Funds routed through an NRE account or fresh foreign remittance are freely repatriable if the property is later sold. Funds from an NRO account (typically India-sourced income such as rent or dividends) can be repatriated up to USD 1 million per financial year, subject to tax clearance and Form 15CA/15CB certification. This distinction matters at purchase, not just at eventual sale, because it determines how easily proceeds can later leave India.
Power of Attorney: Use a Specific POA, Not a General One
A Power of Attorney (POA) is not mandatory for an NRI purchase, but is commonly used when the buyer cannot be physically present for registration, bank formalities or possession. The safer instrument is a Specific (or Special) POA that names the exact acts the attorney-holder may perform, such as signing the sale deed, paying stamp duty or taking possession, rather than a General POA granting broad, undefined authority. General POAs used for high-value transactions have been a recurring source of fraud and post-purchase disputes in Delhi-NCR, and most sub-registrars and developers now scrutinise POA-based transactions more closely as a result. The POA should typically be executed before the Indian consulate in the NRI’s country of residence and adjudicated (stamped) in India before use.
Home Loans for NRIs
Indian banks and housing finance companies offer home loans to NRIs, typically financing 75–90% of the property value, with the balance from the buyer’s NRE/NRO account or fresh remittance. Eligibility criteria are generally stricter than for resident applicants, and EMIs must be serviced through an NRE or NRO account rather than a resident co-applicant’s account alone, unless that co-applicant is also a co-borrower.
South Delhi Resale vs Gurgaon/Noida New-Launch: A Buyer-Suitability Comparison
| Consideration | South Delhi (resale builder floors, e.g. Greater Kailash, Panchsheel Park, Vasant Vihar) | Gurgaon/Noida (RERA-registered new launch) |
|---|---|---|
| Title chain complexity | Often higher — multiple past owners, older conversion/freehold history to verify | Generally lower — single developer chain, but project-stage risk instead |
| RERA protection | Applies only if the specific transaction is a first sale from a registered project; most resale builder-floor deals fall outside RERA’s project-registration protections | Full RERA project registration, escrow account and disclosure requirements apply |
| Remote due diligence difficulty | Higher — encumbrance certificate, society NOC and physical condition are harder to verify without an in-person visit or trusted local representative | Lower for legal status (RERA filings are public), but construction progress still needs physical or photographic verification |
| Typical buyer profile | End-use or long-term hold buyers valuing location and built form over new amenities | Buyers comfortable with a 2–5 year possession horizon and new-building amenities |
| Financing | Home loan and valuation more complex on very old structures | Standard developer-tie-up financing usually available |
PropIntel’s observation: for an NRI who cannot inspect the property in person before purchase, a RERA-registered new-launch project generally offers more verifiable protections on paper, while a South Delhi resale purchase requires a more intensive, locally-anchored due-diligence process on the encumbrance certificate, chain of title and society NOC in particular, precisely because RERA’s disclosure regime does not apply to most resale transactions. PropIntel’s Real Estate Advisor vs Broker in India guide sets out what an independent advisor verifies on a buyer’s behalf in either scenario.
Buyer Checklist: Documents and Steps for an NRI Purchase
- Valid passport and OCI/PIO card (if applicable) and PAN card
- NRE, NRO or FCNR(B) account details for routing the transaction
- If not present in India: a Specific Power of Attorney, executed at the Indian consulate and adjudicated in India
- Encumbrance certificate and, for resale properties, the full chain-of-title documents for at least the preceding 12–13 years
- For new-launch purchases: the project’s RERA registration number, verified independently on the relevant state RERA portal (HRERA for Gurugram, UP-RERA for Noida, or the Delhi RERA authority for Delhi)
- TDS compliance: confirm the seller’s residency status before registration, and file Form 26QB (resident seller) or the applicable TAN-based filing (NRI seller) within the prescribed timeline
- Home loan pre-approval, if financing, with EMI servicing arrangement confirmed through an NRE/NRO account
- A local, independently engaged advisor or advocate to attend registration if the buyer cannot travel
Questions to Ask Before Signing
- Is the seller a resident Indian or an NRI, and has the correct TDS rate been calculated accordingly?
- For a resale property, can the seller produce an unbroken chain of title and a current encumbrance certificate?
- For a new-launch project, does the RERA registration number on the brochure match what is listed on the state RERA portal, including the specific tower/phase being sold?
- What happens to the booking amount if the NRI buyer cannot travel to complete registration within the agreed timeline?
- If a Power of Attorney is used, has it been adjudicated (stamped) in India, and does it name the specific acts required for this transaction?
When Not to Proceed Without Further Verification
An NRI buyer should pause rather than proceed if the seller or broker discourages independent RERA verification, pushes a General POA instead of a Specific one “to save time,” or cannot produce a clean encumbrance certificate for a resale property. Each of these removes a layer of protection that is far harder to reconstruct after registration than before it, particularly for a buyer who cannot easily return to India to resolve a dispute in person.
Frequently Asked Questions
Can an NRI buy property in Delhi-NCR?
Yes. NRIs and OCIs can buy residential and commercial property anywhere in India, including South Delhi, Gurgaon and Noida, without RBI approval and without a cap on the number of properties. They cannot buy agricultural land, farmhouses or plantation property by direct purchase.
Do NRIs need to pay TDS when buying property in India?
Yes, as the buyer. If purchasing from a resident seller for more than ₹50 lakh, the NRI buyer must deduct 1% TDS under Section 194-IA and file Form 26QB. If purchasing from an NRI seller, the required TDS rate is significantly higher (around 20–30% on the gain) and uses a different filing process.
Is a Power of Attorney mandatory for an NRI property purchase?
No, it is not mandatory, but it is commonly used when the buyer cannot be present for registration or possession. A Specific Power of Attorney limited to named acts is safer than a General Power of Attorney for a transaction of this value.
Can NRIs get a home loan to buy property in India?
Yes. Indian banks typically finance 75–90% of the property value for NRI borrowers, with EMIs serviced through an NRE or NRO account, though documentation requirements are generally stricter than for resident applicants.
What documents does an NRI need to buy property in Delhi-NCR?
Typically: passport, OCI/PIO card if applicable, PAN card, NRE/NRO/FCNR(B) account details, a Specific Power of Attorney if not present in person, and, for resale property, the full chain-of-title and encumbrance certificate, or, for new-launch property, the verified RERA registration number.
Sources and Methodology
- FEMA eligibility and restricted property categories: RBI, Master Directions on Acquisition and Transfer of Immovable Property in India, accessed 21 September 2026
- TDS on property purchase (Section 194-IA): Income Tax Department, “TDS – Purchase of Immovable Property”, accessed 21 September 2026
- NRI-specific FEMA/tax summary cross-checked against: SBNRI, “NRI Guide to Buying Property in India (2026)”, published/updated 21 April 2026, accessed 21 September 2026
- RERA verification portals: Haryana RERA (Gurugram), UP-RERA (Noida and Greater Noida)
This article summarises general FEMA and Income Tax provisions as understood at the time of writing; tax rates, remittance limits and procedural requirements are subject to change and vary by individual circumstance (country of residence, DTAA applicability, and property specifics). Readers should obtain project-specific and personal legal and tax advice, ideally from a chartered accountant familiar with cross-border transactions and a property lawyer, before completing any purchase.
PropIntel Perspective
The regulatory path for an NRI buying in Delhi-NCR is well-established, but the practical risk sits in execution: payment-channel compliance, POA structuring, and remote verification of title or RERA status, rather than in eligibility, which is rarely the actual obstacle. This suits NRI buyers who engage a local advisor or advocate to handle registration-stage verification on their behalf, and who are willing to pay for that layer of diligence rather than relying solely on a broker’s or developer’s representations. It suits less well an NRI buyer intending to transact entirely remotely on a resale property without any local representation, given how much of South Delhi’s resale due diligence depends on physical and documentary verification that is difficult to delegate informally. What should be verified before proceeding is the seller’s residency status for TDS purposes, the RERA registration for new-launch purchases, and the chain of title for resale purchases; waiting may be the better course if any of these cannot be independently confirmed before the booking amount is paid.
This article is general information prepared by PropIntel’s research desk and does not constitute legal or tax advice. Please consult a qualified chartered accountant and property lawyer before completing a purchase. Contact PropIntel for acquisition advisory support across Delhi-NCR.