As an individual is the direct owner of the property, he has to be aware of the exchange control consequences of such an investment.
Direct purchase: They can directly purchase any real estate in India (barring farm land, farm house and plantation property) with no restriction on the number of properties. The payment can be made through funds received in India through normal banking channels or funds held in any non-resident account maintained under FEMA.
Gift: Gifts are permitted under the exchange control regime, with relevant Indian stamp laws applicable.
Inheritance: They may inherit Indian real estate from a resident or non-resident (provide the deceased had acquired the property under exchange control regulations).
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Investment options to foreign nationals
Any direct acquisition is not permitted to a foreign national, nor can they be joint owners in a property. However, foreign nationals in India who are citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal and Bhutan would require prior approval to buy a property in India. Foreign nationals are permitted to sell or gift residential or commercial property to any Indian citizen, NRI, PIO with RBIs approval.
Other factors
Along with exchange control regime and tax laws, it is important to note that succession laws in India are region and community-specific. For instance, Hindus and Muslims are governed by different succession rules, which will have to be read with FEMA regulations. Anticipation and planning in advance can protect from such situations
