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Gorai Beach

Investing in Mumbai: Yields, Appreciation & Ownership

Who can buy, how ownership works, and the taxes and duties for buying property in Mumbai.

Gorai Beach · Rangan Datta Wiki / Wikimedia Commons (CC BY-SA 4.0)

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.

BuyerPermittedTenureConditions
Indian ResidentYesFreeholdUnrestricted purchase of residential, commercial, agricultural
NRI / OCIConditionalFreeholdResidential and commercial allowed; agri/plantation/farmhouse only via inheritanceApproval: FEMA / RBI compliance
Foreign NationalNoNoneCannot 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 periodClassificationTax rateIndexation
24 months or lessShort-Term Capital Gain (STCG)At your income tax slab rateNot applicable
More than 24 monthsLong-Term Capital Gain (LTCG)12.5%, without indexationNot 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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