Can NRIs Buy Property in Mysore and Coorg? A 2026 Guide
Mysuru is attracting more attention from Indians living abroad. A December 2025 Business Standard report, citing Credai-Colliers, put NRI real estate investment in India at about $80 billion since 2010, and said buyers are looking beyond the big metros to cities like Mysuru. Developers quoted there point to lower entry prices, appreciation potential and rental yields. Those are the developers' views, not guarantees, but they explain the interest.
Before any money moves, one question matters more than price: what are you legally allowed to buy? For Mysore the answer is straightforward. For Coorg it is not, because of one rule many buyers miss.
- Allowed: residential plots, apartments, villas and commercial property.
- Not allowed: agricultural land, plantation property (including coffee and spice estates) and farmhouses.
- Allowed in a different way: inheriting such property, or buying land that has genuinely been reclassified as non-agricultural before the sale.
Who counts as a non-resident?
Under India's foreign exchange law (FEMA), NRIs, OCI cardholders and foreign nationals are all treated as non-residents. What matters is your residential status, not the colour of your passport. The same permissions and restrictions apply to NRIs and OCI cardholders.
What you can buy
NRIs can buy residential and commercial property in India. Under the Reserve Bank of India's general permission there has been no cap on how many residential or commercial properties an NRI can hold, though you should confirm the current position before you buy. Plots in an approved layout fall under residential property, which is why plots in Mysore suit many overseas buyers: you can hold the land and decide later whether to build.
Why Coorg is different
Coorg (Kodagu) is known for its coffee estates, and much of the land outside the towns is classed as agricultural or plantation land. The central rule here is firm: non-residents cannot buy agricultural land, plantation property or farmhouses anywhere in India.
- State changes do not override it. Karnataka relaxed its own “only farmers can buy farmland” restriction for Indian citizens in 2020. That does not change the FEMA bar for non-residents.
- Converted land is different. Land that has genuinely been reclassified as non-agricultural (NA) before the sale can be bought under the normal property rules. Always ask to see the conversion order and check it against the land records. A seller’s promise to convert after you buy does not make the purchase legal.
- Do not use a relative’s name informally. Buying land in someone else’s name to get around the rule can fall foul of India’s benami property law. Take proper legal advice before any structure like this.
- Inheritance is allowed. You can inherit agricultural land from a resident, or keep land you bought while you were a resident. Update the revenue records promptly after inheriting.
How to pay
Payments should go through normal banking channels, typically an inward remittance from abroad or your NRE or NRO account, never in cash. Keep every transfer record: you will need them when you sell and want to repatriate the proceeds. Confirm the exact route with your bank and a chartered accountant before sending money.
A due-diligence checklist for plots in Mysore
- Title chain. Ask for the sale deeds and ownership history going back several decades, and have a lawyer review them.
- Encumbrance certificate. This shows whether the plot has loans, mortgages or other claims registered against it.
- Approved layout and land use. Check that the layout is approved by the competent authority and that the land is classified for residential use.
- Property records and tax receipts. Confirm the plot is entered in the official records and that property tax is up to date.
- Litigation check. Search for court cases or disputes involving the land or the seller.
- Site verification. Have someone you trust visit the plot, confirm boundaries and send you dated photos or video.
- Registration. The sale deed must be registered at the Sub-Registrar’s office in your name. If you cannot attend, a properly executed Power of Attorney can be used.
Selling and bringing money back
When you sell, the proceeds normally go to your NRO account. Repatriation abroad is generally allowed up to USD 1 million per financial year, using Forms 15CA and 15CB, provided Indian taxes have been paid. The buyer deducts tax at source on the sale, and rental income is taxed too. The rules and rates change, so speak to a chartered accountant who works with NRIs before you buy, not after.
Buying plots through Merianda Estates
We help NRIs find, buy and manage property in Mysore and across South Karnataka, including title verification, registration, Power of Attorney and guidance on NRE and NRO accounts. Current opportunities include:
- Vasanthanagar plots: 7 sites from 1,162 to 2,807 sq ft, available now.
- Chikkahalli layout: 28 plots, pre-launch, coming August 2027, with early registration of interest open.
Read our wider NRI investment guide for more on the buying process.
Thinking of buying in Mysore?
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Send an enquiryFrequently asked questions
Can an NRI buy agricultural land or a coffee estate in Coorg?
No. Under central FEMA rules, NRIs and OCI cardholders cannot buy agricultural land, plantation property or farmhouses in India. They can inherit such property, and they can buy land that has genuinely been reclassified as non-agricultural before the sale.
Can NRIs buy residential plots in Mysore?
Yes. Residential and commercial property, including plots, can be bought by NRIs and OCI cardholders. The key is checking the title, approvals and land-use status before you pay.
Do OCI cardholders have the same rules as NRIs?
Yes. For buying property, OCI cardholders are treated as non-residents in the same way as NRIs, so the same permissions and restrictions apply.
Can I buy property in Mysore without travelling to India?
Often yes. Many NRIs sign through a properly executed Power of Attorney. Choose the person carefully, keep the document specific, and use a reputable advisor to check the title and registration.
How do I pay for the property?
Payments should go through normal banking channels, typically an inward remittance from abroad or your NRE or NRO account, never in cash. Confirm the exact route with your bank and a chartered accountant before transferring money.
Can I take the sale proceeds back abroad?
Repatriation of sale proceeds is generally allowed up to USD 1 million per financial year, using Forms 15CA and 15CB once Indian taxes are paid. Rules change, so confirm the current position with a chartered accountant.
Sources
- Agricultural land in India: what NRIs, OCIs and foreigners can and cannot do (NRI Information)
- Can an NRI purchase or own a property in India? (Housing.com, 2021)
- NRI real estate investment hits $80 billion as buyers flock to tier-2 cities like Mysuru (Business Standard, December 9, 2025)
This article is general information, not legal, tax or financial advice. Foreign exchange, tax and land rules change, so confirm the current position with a qualified lawyer and chartered accountant before you buy.