Purchasing a luxury property in India for residency reasons provides many benefits, such as the scope for long-term growth, enhanced quality of life, and quick access to prime amenities. As urbanisation and economic growth continue to evolve in India, acquiring premium real estate can offer monetary stability and a reputed way of life.
Be it for personal reasons or for making long-term investments, elite properties located in mainstream areas like Mumbai, Bangalore or Delhi can provide the best when it comes to safety, convenience and comfort. Let’s explore more about the benefits of buying luxury properties for residency purposes.
Legal Framework for NRIs Buying Property in India
- The legal structure for NRIs who wish to purchase property in India consists of numerous guidelines that need to be adhered to by Indian laws. NRIs refer to Indian citizens residing outside India for 182 days or more in the previous financial year and can purchase property in India.
- Also, Persons of Indian Origin who might have foreign citizenship but belong to Indian ancestry can buy property in India according to the same rules.
- However, foreign nationals who do not have an Indian origin are prohibited from purchasing property in India unless they meet certain conditions or inherit.
- NRIs can purchase residential and commercial properties in India. However, they cannot buy agricultural land, farmhouses or even plantation properties. This limitation preserves agricultural land for Indian citizens.
- NRIs are needed to present certain documents to complete the property transaction. This involves presenting a Permanent Account Number, which is mandatory for conducting property transactions and taxation purposes in India. Also, NRIs must give proof showing their status, like an OCI (Overseas Citizen of India), PIO status or a valid passport.
- In case the NRI cannot physically be present in India to complete the property transaction, they can appoint a representative via a Power of Attorney, giving them the right to manage the property purchase on their behalf.
These rules and regulations ensure that NRIs can legally invest in Indian properties while complying with all the relevant tax and monetary compliances.
Read Also: Legal Disputes in Indian Real Estate: A Guide for NRIs
Benefits of Buying Luxury Property for Residency
Purchasing luxury property in India for residential purposes provides many important advantages, both from a monetary and lifestyle perspective. Here are some of the prime benefits:
- Safety and Privacy: Various elite properties provide advanced safety features like CCTV surveillance, gated communities and exclusive security personnel. The privacy and space offered in these apartments facilitate a sense of safety among the residents, making them feel free and have their time and space, far from the daily hustle and bustle of more commercialised and crowded areas.
- Status and Prestige: Acquiring a luxury property is often considered to represent status and success. It highlights a specific level of social standing and affluence, which is vital for those who prefer exclusivity, brand goodwill and a sense of recognition among their professional and social groups.
- Sustainability and Environment-Friendly Measures: Various premium properties are made using energy-saving and sustainable technologies, like smart home systems and solar panels.
Doing so not only helps in alleviating potential harmful effects on the environment but also can facilitate the reduction of long-term operating charges for utilities.
Read Also: Connecting to Your Roots: Living in Mumbai’s Rustomjee Paramount as an NRI
Popular Locations for Luxury Property Investment
Here are a few of the locations famous for premium real estate investment:
- Mumbai: As the city is known to be the financial powerhouse of India, Mumbai has been home to many elites of India and is also a magnet for premium property buyers. South Mumbai is famous for its iconic buildings and stunning sea views, whereas locales like Juhu and Bandra are known for providing premium residential spaces, cafes and the Bollywood industry.
- Delhi NCR: Delhi is the administrative and political capital of India and has been a mainstream location for the luxury real estate segment. Delhi has been home to numerous influential personalities, providing huge and spacious apartments along with dedicated green spaces. Also, areas like Vasant Kunj and Greater Kailash are famous for their high-end residential projects.
- Bangalore: This city is widely known to be the tech hub of India, luring many HNIs, executives and entrepreneurs from the tech space. Bangalore provides urbanised elite projects, with top-notch properties in areas like Koramangala and Whitefield being the main targets for affluent investors.
- Chandigarh: Recognised for its well-planned layout and high standard of living, the city provides many elite residential projects in some of its best areas. Sectors like 9, 11 and 15 are regarded as the hotspots that offer brilliant amenities and spacious apartments, grabbing the attention of many affluent and wealthy individuals.
Long-Term Benefits of Owning Luxury Property in India
Owning luxury property in India provides numerous advantages in the long run, right from lifestyle upgrades to monetary benefits; here are some of the key long-term pros:
- Wealth Building and Legacy: Premium properties can serve as an excellent long-term avenue that can be carried down to future generations, retaining a huge wealth corpus for the heirs. These properties are resilient to inflation and can offer long-term monetary safety, making them excellent assets to preserve wealth and facilitate legacy planning.
- Growth in Property Value: Luxury apartments, particularly those in main areas, tend to witness steady growth over time, offering significant returns upon selling. According to a Reuters poll, Indian home prices are expected to rise 6.5% in 2025, driven by demand from the wealthy.
- Enhanced Living Quality: Elite properties offer top-notch amenities and come with a high living standard that can upgrade the overall lifestyle of the residents over time.
- Global Appeal and Connectivity: In major Indian cities, luxury developments lure domestic and global investors, providing an international demand by simplifying the accessibility to commercial spots.
Conclusion
Luxury property investment in India can be immensely rewarding, not merely from an aesthetic perspective, but it can also prove to be a fruitful financial decision that can lead to significant returns in the long run. With an increasing demand for elite housing options and growing urbanisation, these properties have the scope of providing handsome returns.
Premium residential properties by Rustomjee can be a smart move if you wish to build substantial wealth in the long term. Invest in your dream home and reap the best of all that we have to offer.
FAQs
- How does buying luxury property in India help with retirement planning?
In India, luxury property can help with retirement planning by serving as an effective planning tool, offering a reliable asset that grows over time. Also, it provides a comfortable living space after retirement and rental returns, and one can even sell or downsize if required for extra monetary safety.
- What are the tax implications of owning luxury property in India?
In India, owning a premium property comprises property tax, which can differ from one location to another, and rental returns in case the property is rented out. Also, capital gains tax is applicable if the property is sold, and long-term gains are taxed at 20% after holding the property for more than two years.
- How does owning a luxury property in India impact eligibility for long-term residency or citizenship?
Owning a luxury property in India does not directly grant residency or citizenship. However, it can support long-term visa applications, such as an Investor Visa or an OCI (Overseas Citizen of India) card for eligible foreign nationals of Indian origin.
