Buying a Home in India

India, with its rich cultural heritage and booming economy, is an attractive destination for expats from around the world. Whether you're moving for work, retirement, or simply to experience a new way of life, buying a home in India can be a rewarding investment. However, the process can be complex and challenging, especially for foreigners. This guide aims to provide you with key information and tips to navigate the Indian real estate market and successfully purchase your dream home.

How Do I Find Houses for Sale in India?

India has a robust real estate market with numerous online portals, real estate agencies, and brokers to help you find properties for sale. Websites like 99acres, MagicBricks, and Housing.com provide comprehensive listings across the country. You can also engage a local real estate agent or broker who has in-depth knowledge of the local market. It's advisable to do thorough research and visit multiple properties before making a decision.

Are There Restrictions on Foreigners Owning Property in India?

Yes, there are restrictions on foreigners buying property in India. According to the Foreign Exchange Management Act (FEMA), a foreign national of non-Indian origin resident outside India cannot purchase any immovable property in India. However, foreign nationals of non-Indian origin who are resident in India or have been permitted by the Indian government to live in India for work can purchase property. Foreign companies who have been permitted to open a branch or project office in India can also acquire property. It's advisable to consult with a legal expert to understand these regulations in detail.

Does India Have an MLS Type System?

India does not have a Multiple Listing Service (MLS) system like in the United States. However, there are numerous online portals and real estate agencies that provide comprehensive property listings. These platforms allow you to filter properties based on location, price, size, and other preferences.

Do Brokers Have Licenses and How Do I Know if They Are Licensed?

Yes, real estate brokers in India need to be registered under the Real Estate (Regulation and Development) Act, 2016 (RERA). You can verify a broker's license by checking their registration number on the RERA website of the respective state.

What Documents Are Required When Buying a Home?

Key documents required when buying a home in India include the Sale Deed, Mother Deed, Building approval plan, Encumbrance Certificate, Completion Certificate, Occupancy Certificate, Tax receipts, and Khata Certificate. It's crucial to ensure that all these documents are in order and verified by a legal expert.

Do I Need a Lawyer When Buying a Home in India?

Yes, it's highly recommended to hire a lawyer when buying a home in India. A lawyer will help you verify the property documents, ensure the property has a clear title, and assist in drafting and registering the Sale Deed. The cost of hiring a lawyer can vary, but it's generally around 1-2% of the property value.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both cash purchases and mortgages are common in India. The choice depends on the buyer's financial situation. Banks and financial institutions in India offer home loans to both residents and non-residents. However, the loan approval process can be stringent for foreigners.

Are There Inspections That Take Place, and If So What Is That Process Like?

Yes, property inspections are a crucial part of the home buying process in India. It's advisable to hire a professional inspector who can check the property for structural issues, quality of construction, electrical and plumbing systems, and other potential problems. The inspection report can be used to negotiate the price or request repairs.

What Are Some of the Pitfalls to Avoid When Buying Property in India?

Some common pitfalls to avoid when buying property in India include not verifying the property documents, not checking the builder's credibility, not inspecting the property, and not understanding the total cost of ownership. It's also important to be aware of the property's location, infrastructure, and potential for appreciation. Always seek professional advice and do thorough due diligence before making a purchase.

Expats Talk about Real Estate in India

"For the move itself, don't bring too much. Most domestic items can be found very cheaply here, so long as you steer away from the malls. Bear in mind that unfurnished here means not just no furniture but no air conditioners, appliances and so forth. Make sure you know exactly what is included. Don't be shy about asking for things such as new mattresses and also new furniture if it looks well used! Power blackouts are common. Make sure you have generator back-up or at least an inverter (battery back up) or you'll spend a lot of time in the dark. Don't expect an oven, very few places have them. We only saw one apartment with an oven (which we now live in, but that wasn't the deciding factor). Microwaves are smaller than in the US but you can get combination microwaves that also double as a convection oven. You won't be cooking big turkeys so a small oven shouldn't be too troublesome. Insist on a water purifier. When you arrive start out with bottled water and after several weeks convert to the purifed water and your stomach should adapt pretty well. Decide before packing whether you will choose to live in unfurnished, partially furnished or furnished. A colleague packed assuming he'd find an unfurnished apartment but wasn't able to find one (mostly furnished here) and now he and his wife are having to try and store furniture that they brought from the US. No easy task. For neighborhood, I can't comment on areas that we don't live in but we really like where we live in the Boat Club Road area as there is plenty to do within easy walking distance. Don't try to wait it out until you dream home turns up. It won't and it is better, in our view, to get settled quickly. Nothing ever seems to be quite finished, so expect teething problems and don't get hot under the collar about them as you'll waste a lot of emotional energy to no avail. It's different here! Get to know your neighbors, especially the locals as we have found them to be unfailingly friendly and helpful - our immediate neighbor arranged a dinner party to welcome us and introduce us to some other neighbors within a week of arrival. The little tips they can help you with can make life much easier - such as one of the local grocery type stores delivers and so our neighbor took our list and called them and we had all the cleaning stuff we needed, you know mops, brooms, trashcans, and so on within an hour of moving in without the hassle of having to shop for them and far cheaper than had we bought them at one of the supermarkets that expats tend to gravitate towards, at least in their early days in country. Find your nearest little photo store and get a couple of dozen passport photos done as soon as you arrive. You'll need them as they are obligatory for even routine stuff like getting a contract to deliver propane (which your cooker works on), cellphone, aircard, lease registration and so many other things. Carry your passport. You'll need it for ID purposes a lot in the early days. In Pune, shop on MG Road (Mahatma Gandhi Road). There are some great little stores and you'll get most of what you need at much less cost than in the malls and it's a lot more fun too. Don't be afraid to buy your groceries from the markets. Sure the vegetables have a shorter shelf life than in the US, but Indians buy every day and many don't have fridges. You'll need to wash them thoroughly (using purified water) before use, but then you should back home too! The most important advice? Don't fight the place, you'll have gone home again before it changes that much. Relax, get into the flow and enjoy India and if you do it's an adventure and a wonderful place to live," said one expat living in Pune.

"Mussoorie is a hill station--and because of that, most directions include "up from" or "down past", and they're meant in the vertical sense. Be ready and able to walk, or get yourself a driver's license for a car, motorbike or scooter if you're not going to want to walk. Except for the monsoon, the climate is pretty mild. You can buy just about everything you'll need here or down the mountain in Dehradun, so pack your personal sentimental things - furniture, clothing, pots and pans, etc. are all readily available," wrote a member in Mussoorie.