NRI's Complete Guide to Buying Property in Ayodhya

Ayodhya is drawing NRI investors from across the world, the US, UK, UAE, Canada, Singapore, and Australia. Some are buying for financial returns. Many are buying for a deeper reason, a connection to a city that holds profound meaning for the Indian diaspora.

Whatever the reason, the process of buying property in Ayodhya as an NRI is more straightforward than most people assume. digital documentation, and improved banking processes have made remote property purchase in India significantly more accessible.

This is the complete guide, eligibility, rules, process, taxes, and what to watch out for.

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Can NRIs Buy Property in Ayodhya?

Yes. NRIs (Non-Resident Indians) can purchase property in Ayodhya under the Foreign Exchange Management Act (FEMA) and RBI guidelines, without requiring any special permission from the RBI in most cases.

What NRIs can buy:

• Residential apartments and flats
• Commercial shops, studios, and office spaces
• Under-construction projects from RERA-registered developers

What NRIs cannot buy directly:

• Agricultural land
• Plantation property
• Farmhouse property

Ayodhya's commercial studio apartments, retail shops, food court spaces, and residential flats all fall within the permitted category for NRI purchase.

Who Qualifies as an NRI for Property Purchase?

Under FEMA, an NRI is an Indian citizen who resides outside India for employment, business, or other purposes indicating an indefinite period of stay abroad.

This also includes:

• PIO (Person of Indian Origin): Holds foreign passport but has Indian-origin roots
• OCI (Overseas Citizen of India): OCI cardholders have the same property purchase rights as NRIs

If you hold an Indian passport and live abroad, you are an NRI. If you hold a foreign passport but are of Indian origin, check whether you hold OCI status, which gives you equivalent rights.

Note: Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, and Bhutan require prior RBI approval to purchase property in India. This applies even if they hold OCI status.

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How Can an NRI Pay for Property in Ayodhya?

This is one of the most common questions, and it has a clear answer under FEMA regulations.

Permitted payment methods:

• NRE Account (Non-Resident External): Funds in this account are remitted from overseas earnings. Payments from an NRE account are fully repatriable, meaning profits and proceeds can be sent back abroad.
• NRO Account (Non-Resident Ordinary): Holds income earned in India, rent, dividends, interest. Repatriation from NRO is limited to USD 1 million per financial year after applicable taxes.
• FCNR Account (Foreign Currency Non-Resident): Funds in foreign currency. Can be used for property purchase.
• Direct remittance from abroad: Through normal banking channels using foreign currency.

What is not permitted: Payment in cash, traveller's cheques, or foreign currency notes. All transactions must go through proper banking channels.

Home Loan for NRIs — Is It Possible?

Yes. Major Indian banks including SBI, HDFC, ICICI, Axis, and Bank of Baroda offer home loans to NRIs for property purchase in India.

Typical NRI home loan terms:

• Loan amount: Up to 80% of property value (LTV ratio)
• Tenure: Up to 20–30 years depending on the bank
• Interest rate: Linked to the bank's MCLR or repo rate, currently in the 7.10–7.50% range
• EMI repayment: Must be from NRE, NRO, or FCNR account, not from foreign currency directly

Documents typically required:

• Valid Indian passport and visa
• OCI card if applicable
• Overseas employment proof or business registration
• Last 6 months' salary slips or income proof
• Last 2 years' IT returns or overseas tax returns
• Bank statements (NRE/NRO)
• Property documents

Power of Attorney — Buying Without Visiting India

Many NRIs complete the entire purchase process without physically visiting India. This is done through a Power of Attorney (PoA).

A PoA authorises a trusted person in India, a family member, friend, or lawyer, to execute documents, register the property, and manage the transaction on your behalf.

Important requirements for NRI PoA:

• The PoA must be notarised by a Notary Public in the country where you reside
• It must then be attested by the Indian Embassy or Consulate in that country
• Once received in India, it must be adjudicated (stamped) by the Sub-Registrar
• The PoA must specifically authorise the sale/purchase of the specific property in question, a general PoA is not sufficient for property registration

Without proper PoA execution, the property registration in India cannot proceed. Get this right before initiating the transaction.

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Tax Implications for NRI Property Buyers

At the time of purchase:

• Stamp Duty: Payable at state rates, in Uttar Pradesh (Ayodhya), stamp duty is typically 7% for male buyers and 6% for female buyers of property value
• TDS on purchase from a resident seller: NRI buyer must deduct 1% TDS if property value exceeds ₹50 lakh (Section 194-IA)

On rental income:

• Rental income earned in India is taxable in India under the Income from House Property head
• TDS of 30% is deducted at source on rent paid to NRIs (Section 195)
• Net rental income after standard deduction (30% of net annual value) and interest deduction is added to total Indian income and taxed at slab rates
• DTAA (Double Taxation Avoidance Agreement) benefits may apply depending on the country of residence, reduces the risk of paying tax twice on the same income

On sale of property:

• Short-term capital gains (held less than 24 months): Taxed at applicable income slab rate
• Long-term capital gains (held more than 24 months): 12.5% without indexation (post July 2024 budget)
• TDS of 20% on LTCG is deducted by the buyer at the time of purchase from an NRI seller, the NRI can claim refund of excess TDS while filing ITR

Filing ITR in India: NRIs who earn income in India, rental income or capital gains from property sale, must file Income Tax Returns in India. This can be done online through the Income Tax portal from anywhere in the world.

RERA Protection for NRI Buyers

All under-construction projects above 500 sq. metres or 8 units must be registered under UP RERA (Uttar Pradesh Real Estate Regulatory Authority).

RERA gives NRI buyers:

• The right to accurate project information, floor plans, carpet area, completion timelines
• The right to compensation for delays, 10.25% interest on invested amount per year of delay
• The right to file complaints from anywhere in the world, online complaint portal
• Assurance that 70% of your investment is held in an escrow account dedicated to that project

How to verify UP RERA registration: Visit the UP RERA portal (uprera.gov.in), enter the project's RERA registration number, and review the approved plan, timeline, and QPR filings. Do this before making any payment.

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Step-by-Step Process for NRI Property Purchase in Ayodhya

Step 1: Research and shortlist Identify the right zone (temple corridor, airport road, outer ring road), asset type (commercial studio, retail, residential), and RERA-registered project. Verify the developer's delivery track record.

Step 2: Execute Power of Attorney If not visiting India personally, get PoA notarised and consularised in your country of residence. Send the original to your representative in India for adjudication.

Step 3: Booking and token payment Pay the booking amount from your NRE, NRO, or FCNR account. Get a signed booking form and receipts.

Step 4: Due diligence Verify title documents, encumbrance certificate, RERA registration, approved building plan, and developer credentials. Hire a property lawyer for this step — do not skip it.

Step 5: Sale Agreement Sign the Sale Agreement (Agreement to Sell). This is a legally binding document that specifies payment schedule, possession date, penalties, and specifications. Review carefully before signing.

Step 6: Home loan application (if applicable) Apply for NRI home loan from your preferred bank. Provide all required documents. Get sanction letter before the next payment milestone.

Step 7: Construction-linked payment Make payments as per the construction-linked plan from your NRE/NRO account. Keep records of all bank transfers.

Step 8: Property registration On possession or as agreed, execute the Sale Deed and register it at the Sub-Registrar's office. If not present in India, your PoA holder executes this on your behalf. Pay stamp duty and registration charges.

Step 9: Mutation and utility transfer Get the property mutated in your name in municipal records. Transfer electricity, water, and other utilities to your name.

Step 10: Rental management If you are renting out the property remotely, appoint a property management company or trusted local representative to manage tenants, maintenance, and monthly income collection.

Repatriation — Getting Your Money Back

This is one of the most important concerns for NRI investors.

Repatriation rules:

• Principal amount invested from NRE account: Fully repatriable
• Principal from NRO account: Up to USD 1 million per year after taxes
• Rental income: Can be repatriated from NRO account up to USD 1 million per year
• Sale proceeds: Repatriable subject to applicable TDS payment and CA certificate

To repatriate funds, you need:

• Form 15CA and 15CB (CA certificate confirming taxes paid)
• Proof of source of investment (original NRE/NRO payment records)
• Bank application for outward remittance

This process is well-established, Indian banks handle it regularly for NRI clients.

Why Ayodhya Specifically Makes Sense for NRIs

Beyond the financial returns, commercial yields of 10–20%, appreciation of 5–10x in prime zones since 2019, and an airport now connecting the city to international destinations, Ayodhya carries a unique emotional and cultural significance for the Indian diaspora.

For millions of NRIs, owning a property in Ayodhya is not purely a financial decision. It is a connection to heritage, to family, and to a city that will remain one of the most visited places in India for generations. That emotional demand creates a price floor that purely financial markets cannot replicate, and supports values even during periods of broader market consolidation.

The combination of financial return and personal meaning makes Ayodhya a genuinely unusual investment destination for the NRI community.

Samrajya Ayodhya, Built for NRI Investors

For NRI investors specifically, Samrajya Ayodhya by Starling Group offers several features that address common remote-buyer concerns.

• Location: 1 km from Ram Mandir on VIP Road, highest footfall commercial zone
• Asset types: Commercial studio apartments, retail shops, food court spaces
• Starting price: ₹62 lakh, accessible entry with strong income potential
• UP RERA registered — full regulatory protection for NRI buyers
• Managed rental options — professional rental management available, enabling completely passive income for remote owners
• Developer credibility: Starling Group, 30+ years of delivery across Delhi-NCR and Uttarakhand
• Targeted monthly income: ₹1 to ₹1.5 lakh from well-positioned commercial units

The project is designed to be investable and manageable entirely remotely, from booking to possession to rental management.

Conclusion

Buying property in Ayodhya as an NRI is not complicated. FEMA allows it. RERA protects it. Banking channels support it. And the financial and emotional case for Ayodhya is stronger than for almost any other city in India right now.

The key steps are simple: verify eligibility, use the right payment account, execute proper PoA if not visiting, check RERA registration, and work with a credible developer who has a delivery track record.