Investing in Mumbai: Yields, Appreciation & Ownership
Who can buy, how ownership works, and the taxes and duties for buying property in Mumbai.
Who can buy in Mumbai
Indian citizens and resident buyers enjoy unrestricted ownership of residential and commercial real estate. NRI/OCI buyers follow FEMA regulations — residential/commercial allowed, agricultural land only via inheritance. Foreign nationals cannot purchase property in India except by inheritance.
| Buyer | Permitted | Tenure | Conditions |
|---|---|---|---|
| Indian Resident | Yes | Freehold | Unrestricted purchase of residential, commercial, agricultural |
| NRI / OCI | Conditional | Freehold | Residential and commercial allowed; agri/plantation/farmhouse only via inheritanceApproval: FEMA / RBI compliance |
| Foreign National | No | None | Cannot purchase; inheritance allowed from Indian resident |
India rule, applies in Mumbai.
Capital gains on a sale
Capital gains tax is levied on the profit from selling property. The tax rate and classification (short-term or long-term) depend on the holding period, with specific rules and indexation benefits applicable.
| Holding period | Classification | Tax rate | Indexation |
|---|---|---|---|
| 24 months or less | Short-Term Capital Gain (STCG) | At your income tax slab rate | Not applicable |
| More than 24 months | Long-Term Capital Gain (LTCG) | 12.5%, without indexation | Not applicable |
India rule, applies in Mumbai.
Always consult a licensed real estate attorney before purchase. Rules change; verify current law. Always confirm with a qualified tax professional. Rules change; verify with a professional before you transact.
Frequently asked questions about Mumbai
With conditions. Residential and commercial allowed; agri/plantation/farmhouse only via inheritance Approval: FEMA / RBI compliance.
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