How Government Reforms Are Boosting NRI Real Estate Investments?

The Indian real estate sector has long been a lucrative avenue for Non-Resident Indians (NRIs) looking to invest in India. For millions of Indians living in other countries, real estate investment in their country is more than a financial decision- it gives them a sense of belongingness. However, complex regulatory frameworks and real estate taxation issues often discourage NRIs from exploring the full potential of this industry.

But with the upcoming Union Budget 2025, NRI real estate investment India is expected to witness a boom in the coming years. Besides, the introduction of the Real Estate Regulatory Authority (RERA), GST clarity, and digital property records have reduced the number of fraud cases and improved buyer confidence. Such reforms have made it easier and safer for NRIs to invest without being physically available for the property deal.

The NRIs today are keenly observing policy changes that could introduce investor-friendly measures, as these reforms would give them the opportunity to invest in real estate properties. In this blog, we will explore how government reforms in real estate can streamline the process of buying a property in India.

Key Stats

• India recorded foreign direct investment (FDI) inflows surpassing the USD 50 billion mark in FY 2024–25, reflecting a 13% from the US$44.4 billion received in the previous fiscal year.
• According to IBEF, the real estate sector in India is expected to reach USD 1 trillion in market size by 2030, up from USD 200 billion in 2021.
• The Government has allowed FDI of up to 100% for townships and settlements development projects, opening more avenues for NRIs.
• NRIs contributed almost 15%–25% of investments in newly launched residential projects across India’s top seven cities (Delhi-NCR, Mumbai Metropolitan Region, Bengaluru, Pune, Hyderabad, Chennai, and Kolkata) in 2024.

Tax Benefits for NRIs

The boom in the real estate sector and an increase in international tourism have made investing in real estate properties with high NRI participation one of the most promising ventures.

NRIs earning within the revised exemption threshold are excluded from paying income tax in India, although this depends on their tax residency status. Under Budget 2025, the Indian government has introduced several tax incentives for homebuyers, reduced GST rates on under-construction properties, and streamlined stamp duties to make property transactions safer and more affordable.

What is the Impact of the Union Budget 2025 on Residential and Commercial Real Estate for NRIs?

Residential Sector

Within the residential sector, the government announced an extension of subsidies under the Pradhan Mantri Awas Yojana. This initiative makes affordable housing projects an attractive NRI investment option. RERA and NRI investors buying multiple properties in India will benefit from tax exemptions on a second home as long as it’s self-occupied.

Commercial Sector

Under the Liberalised Foreign Investment Norms, NRIs can now freely invest in commercial real estate ventures, such as office spaces, malls, and hotels. Besides, the government’s higher capital expenditure on metro projects, highways, and smart cities has increased the demand for commercial projects, thereby attracting more NRI real estate investment.

Policy Support for NRI Investments Brings Ease of Doing Business in India

FDI relaxation is a ray of hope for investors. With reforms related to FDI in real estate in India, NRIs can easily invest in large-scale projects, including residential townships and commercial developments.

Other Regulatory Government Reforms Real Estate India

• Ease in Property Registration: The Indian government has launched a digital platform to streamline the NRI property buying process. From property registrations to form submission to closing the deals, the entire process can be completed without delays.
• PoA: NRIs living abroad get the option of granting a power of attorney (PoA) to a friend or family member who can then finish the purchasing of a property in India on their behalf.
• Lower Stamp Duty Charges: Stamp duty and registration charges for NRIs have been reduced in certain states, to make property transactions more cost-effective.
• Strengthened RERA regulations: RERA focuses on strict compliance from developers to ensure transparency in real estate investments.

Benefits of Investing in Real Estate Properties in India

By introducing budget reforms, the Indian government aims to make real estate investments more profitable and accessible for NRIs. These reforms, when deployed successfully, will result in real estate transparency in India.

Increased Profit Margins with Reduced Tax Liabilities

Some of the biggest obstacles for NRI real estate investment in India include complex tax structures, more taxes, and regulatory bottlenecks. But with the introduction of tax incentives, reduced GST rates, and well-structured regulatory processes, NRI real estate investment India is expected to increase manifold. Lower taxation would eventually result in higher income, thereby attracting NRIs to high-end real estate projects.

Long-Term Wealth Appreciation

Unlike other asset classes, real estate properties generally have a high appreciation rate. With improved investment policies and real estate transparency in India, NRIs can benefit from both short-term rental income and long-term value growth. The demand for premium real estate properties has also grown phenomenally, offering a luxury investment option for high returns.

Conclusion

The Union Budget 2025 has introduced many changes that will significantly impact NRI real estate investments. Introduction of tax reforms, relaxed norms related to FDI in real estate India, new investment opportunities in the residential and commercial sectors, etc., will not only encourage more participation but also help RERA and NRI investors maximise their returns with fewer obstacles.

With government reforms like RERA and digitisation, transparency, and surging urban demand, the real estate investment tends to become more favourable than ever. By investing in properties from reputed real estate companies like Adani Realty, NRIs can have both secured and rewarding investments.

Whether you are looking for a premium residential or commercial project, Adani Realty designs properties that match the aspirations of modern NRI investors.

Read More Blogs:

• Property in Golf Course Extension, Gurgaon: A Premium Address for Modern Living!
• Premiumness Beyond the Home: What Makes Adani Shantigram a Lifestyle Destination
• Jagatpur, Ahmedabad: The Next Real Estate Hotspot Fueled by Adani’s Vision
• Why Adani Shantigram is Ahmedabad’s Smartest Real Estate Investment in 2025