FEMA Compliance Status: Permissible
NRIs and OCIs can acquire commercial and residential real estate under general permission without prior RBI approval.
RBI COMPLIANT
Net Effective Yield
7.68%
Post-PMC, maintenance & vacancy
Net Operating Income (NOI)
₹11,52,000
Annual operational net cash flow
Remote Friction Loss
₹1,23,000
Annual management & amortized void
Delta vs Indian REITs (6.5%)
+1.18%
Premium justifies physical ownership
Yield Benchmark: Commercial vs REITs vs Residential
Moderate Overhead
Commercial real estate yields 2x–3x standard residential rent (2.5%–3.5%), but physical management from abroad entails vacancy reserves that public REITs eliminate.
Cash Flow Waterfall & Tenancy Structuring
| Financial Component | Rate / Basis | Annual Value (INR) | Analytical NRI Guidance |
|---|---|---|---|
| Gross Contractual Rent | 8.50% | ₹12,75,000 | Contracted topline before remote management deductions. |
| PMC Retainer Fee | 8.00% | -₹1,02,000 | Eliminates dependence on aging family/friends in India. |
| Amortized Vacancy Downtime | 5 Mo / 9-Yr Cycle | -₹21,000 | Commercial tenants require months of fit-out transition. |
| Underwritten Net Operating Income | 7.68% | ₹11,52,000 | True net cash inflow into NRE / NRO bank accounts. |
FEMA & Repatriation Compliance Checklist
- Permissible Acquisitions: Commercial units, SCO plots, and residential flats can be purchased freely under RBI general permission via NRE/NRO or inward banking remittance.
- Strict FEMA Prohibition: Under Section 6(3)(i) of FEMA, NRIs/OCIs cannot purchase agricultural land, farmhouses, or plantation properties without prior RBI clearance.
- Rental Repatriation: Net rental income credited to NRO accounts is fully repatriable up to USD 1,000,000 per financial year under RBI LRS after Form 15CA/15CB CA certification and 30% TDS withholding (unless lower DTAA certificate is obtained).
Underwriting Dossier Audit Export
State Ready