What is the minimum investment under FDI route?

US $5 million (effectively), with 20,000 sqm minimum project area. These minimums apply to construction-development; some sectors (REITs) have different thresholds.

How does Press Note 3 affect FDI?

Investments from land-border countries (China, Pakistan, Bangladesh, Nepal, Bhutan, Myanmar, Afghanistan) require prior DPIIT approval, regardless of sector. Beneficial-ownership analysis applies.

Can NRIs invest in real estate?

Yes — NRIs / OCIs can buy residential and commercial property (not agricultural / plantation / farmhouse) on a non-repatriable basis under FEMA. Repatriable investment has additional conditions.

What about REIT / InvIT investment?

FDI in registered REITs / InvITs is permitted under automatic route up to specified limits. Provides cleaner regulatory pathway than direct construction-development FDI.

FDI in Real Estate

Foreign Direct Investment advisory in Indian real estate — FEMA, Press Note 3, sectoral caps, downstream investment and exit strategy.

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Overview

Understanding FDI in Real Estate

Foreign Direct Investment (FDI) in Indian real estate is permitted in construction-development projects under the FEMA Non-Debt Instruments Rules, 2019 — subject to specific conditions on minimum project size, capitalization, lock-in and exit. Direct investment in trading of land, farm-houses or completed real-estate is restricted; investment in REITs is now welcomed. Key conditions include minimum 20,000 sqm built-up area, minimum FDI of US $5 million, 3-year lock-in (subject to project completion), and pre-development investment restrictions. Press Note 3 of 2020 added screening for investments from countries sharing land borders with India (China, Pakistan, Bangladesh, etc.). We advise foreign developers, sovereign wealth funds, REITs and pension funds on FDI structuring, FEMA compliance, downstream investment via Indian holding companies, repatriation, exit and dispute resolution. We also advise NRIs / OCIs on FEMA-compliant property investment.

Why Legal Door

Built for Outcomes, Trusted Pan-India

Specialist lawyers, transparent pricing and end-to-end execution from first call to final order.

FEMA-Compliant Structuring

Investment structures designed for repatriation and regulatory comfort.

Press Note 3 Navigation

Where investor jurisdiction triggers prior approval — DPIIT process managed end-to-end.

JV / SPV Structuring

Joint venture and SPV structures for development partnerships.

Exit & Repatriation

Compliance for project exit, dividend / capital repatriation.

What We Cover

Key Highlights

FDI eligibility under FEMA NDI Rules, 2019

Construction-development conditionality

Minimum project size (20,000 sqm) and capitalization (US $5M)

3-year lock-in subject to project completion

Press Note 3 — prior approval for land-border countries

Joint venture and SPV structuring

Downstream investment compliance

REIT / InvIT investment route

Repatriation and exit advisory

NRI / OCI specific routes

Our Process

How We Help You

A straightforward, transparent path from first call to resolution.

1Eligibility & Structure

Map investor profile, target project, Press Note 3 applicability.

2Approval (if required)

DPIIT prior-approval filing for sensitive jurisdictions.

3SPV / JV Setup

Indian SPV incorporation, FDI infusion, ROC filings.

4FEMA Compliance

FC-GPR, FC-TRS, ARF and other RBI filings.

5Project Execution

Land acquisition / development; ongoing FEMA compliance.

6Exit

Sale of investment, repatriation, FEMA closure.

Legal Framework

Applicable Laws & Regulations

Key statutes, rules and judicial precedents that govern this service.

FEMA, 1999 and Non-Debt Instruments Rules, 2019

Govern foreign investment in India.

Press Note 3 of 2020

Prior approval for investments from land-border countries.

Consolidated FDI Policy

DPIIT-issued policy with sectoral caps and conditions.

RERA Act, 2016

Project regulatory compliance applicable regardless of investor nationality.

Avoid These Mistakes

Common Pitfalls

Costly errors we routinely help clients fix — or better, avoid altogether.

Pre-Development Restrictions

FDI cannot be infused for trading of plots / completed assets — only for construction-development.

Lock-in Mis-Application

3-year lock-in is project-specific; transfer / exit before lock-in is restricted.

Press Note 3 Triggers

Even indirect ownership from land-border countries triggers approval. Beneficial-ownership analysis essential.

FEMA Non-Filing

FC-GPR / FC-TRS filings within 30 days are mandatory; missed filings invite compounding.

FAQs

Common Questions

Everything you need to know before you begin

No — direct purchase of agricultural / plantation / farmhouse land by foreigners is prohibited. Investment in construction-development projects through corporate vehicles is permitted under FDI policy.

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