What Types of Land Can NRIs Buy in India

January 6, 2026

Blog & Articles ,

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What Types of Land Can NRIs Buy in India

Non-Resident Indians (NRIs) generally have the desire to invest in land in India, whether for its heritage value or for its ability to create a luxurious or wealth-building opportunity. However, the regulatory environment surrounding the ownership of land by NRIs is distinct and varies according to the category of the land.

1. Agricultural Land and Farmland - Understanding the Restriction

NRIs are also interested in agricultural land from an aesthetic perspective, in addition to its value for appreciation. However, NRIs cannot purchase agricultural land in India. Agricultural land includes plantations, or plots of land that are not used for any other purpose except agricultural purposes.
Exceptions are rare, but an NRI is allowed to inherit farmland from a relative or receive it as a gift, and in extreme cases, an NRI may obtain permission to use the land for agriculture after clearance from the authority. An inherited agricultural plot of land cannot be sold to another NRI.
Although agricultural lands have aesthetic and emotional value, NRIs searching for hassle-free investment options would normally be interested in lands identified as non-agricultural.

2. Semi-Developed and Developed Plots — Clarity and Legal Safety

Semi-developed or fully developed plots would be some of the most readily available options to NRIs. This land is normally titled, well-documented, and also accessible to basic infrastructure such as water, electricity, or roads.
These plots have a "Non-Agricultural" designation, which qualifies them to be eligible for purchasing through NRIs without the need for any special approvals. These lands are perfect for raising residential, villas, or even commercial buildings.
Semi-developed plots offer an amalgam of affordability, lifestyle, and potential for long-term investments. They find particular favour in areas surrounding growing urban centres where land can be expected to appreciate in value.

3. Farmhouse Plots in Gated Communities — Lifestyle and Investment

Farmhouses in the Gated or Planned Communities offer plots that are widely popular with the NRIs. Such plots are classified as non-agricultural and are provided with basic infrastructure, including utility services and security.
Weekend homes, elderly care homes, and other small-scale resort homes would be apt for the land. Apart from their utility purpose, the land makes a good investment source. People would be interested in buying such lands in areas near cities or areas that contain beautiful landscapes.
Farmhouse plots for investment offer the benefits of a rural residential experience with complete documentation for ownership, providing NRIs with a soothing experience regarding compliance with the authorities.

4. Large Estate Parcels (1–5+ Acres) — Strategic Asset Class

NRIs looking to acquire bigger properties can consider estate plots that are an acre or bigger in size. Such properties have to be non-agricultural and ought to lie in or around areas where development corridors exist.
Large plots of land will be ideal for entrepreneurial ventures like the construction of boutique resorts, health resorts, or eco-friendly resorts. They will also provide great appreciation potential. NRIs will have the option of developing the land step by step or using the land for co-investment schemes.
In fact, unlike agricultural properties, after being properly zoned, such estates do not require any special approval to purchase or develop; hence, they make ideal acquisitions for NRIs.

Key Considerations for NRIs

One should always ensure that payments go through the right channels for regulatory compliance.
Carry out extensive due diligence on the land titles, encumbrances, and ownership history.
Before finalising a purchase, involve lawyers and property experts, especially if you intend to develop the property.

Conclusion

Though purchasing an NRI in agricultural land in India is banned, several other options exist for NRI investment in land in India that are most assured. Semi-developed land, farmhouses, and large land parcels provide NRIs with secure property rights, lifestyle options, and substantial future appreciation on their land investments in India.