**Why NRIs Are Flocking to South Indian Real Estate** South India — particularly Chennai, Hyderabad, Bengaluru, and now Coimbatore — continues to attract NRI buyers for several compelling reasons: strong diaspora connections, transparent RERA framework, and rupee depreciation that makes dollar/dirham-priced purchases increasingly attractive. RBI data shows NRI remittances for real estate investment crossed ₹1.92 lakh crore in calendar year 2025, up 24% from 2024. **Who Can Buy What — FEMA Rules** Under the Foreign Exchange Management Act (FEMA) and RBI guidelines: - **NRI (Non-Resident Indian)** and **OCI (Overseas Citizen of India)**: Can purchase residential and commercial properties freely. No RBI permission required. - **Foreign Nationals** (non-NRI, non-OCI): Cannot purchase residential property in India without RBI approval. Agricultural land, plantation property, and farmhouses are prohibited for NRIs too. - **PIOs without OCI card**: Treated as foreigners. Consult a FEMA specialist. **Financing Your Purchase** NRIs can avail home loans from Indian banks: - **Eligible lenders**: SBI, HDFC, ICICI, Axis Bank, and most scheduled commercial banks - **Loan-to-value (LTV)**: Up to 80% of property value - **EMI repatriation**: EMIs must be paid from NRE/NRO account or foreign currency account; repatriation of principal and interest is freely allowed from NRE accounts - **Documentation**: Passport, visa, overseas employment proof, 6 months' salary slips, overseas bank statements, and Indian address proof **Power of Attorney (PoA)** Since most NRIs cannot physically attend every stage of the transaction, a **notarised and apostilled PoA** from the country of residence is essential. The PoA must be: - Executed in the country of residence - Attested by the Indian Consulate/Embassy - Registered at the Sub-Registrar's office in India once received **Tax on Sale** When selling after 2 years (long-term capital gains): tax at 12.5% (no indexation post-2024 amendment). TDS is 12.5% to be deducted by the buyer. NRIs can apply for a lower TDS certificate from the Income Tax Officer to reduce this burden. **Best Cities for NRIs in 2026** - **Chennai**: Preferred by Tamil diaspora; ECR and OMR offer beach-front to IT-belt exposure - **Hyderabad**: Telugu diaspora favourite; Gachibowli, HITEC City, and Kokapet offer strong rental yields - **Bengaluru**: For NRIs in tech; Whitefield and Sarjapur Road remain evergreen **Tips for a Smooth Remote Purchase** - Use video KYC — most banks now accept this - Insist on video walkthroughs of the site and sample flat - Engage a local RERA-registered agent for on-ground verification - Never transfer money to a builder's personal account; always to the RERA escrow account