NRIs Flocking to India's Real Estate - A Win-Win Investment Amidst a Shifting Market

India’s real estate sector is witnessing a dynamic shift — and Non-Resident Indians (NRIs) are playing an increasingly influential role in this growth story. While domestic housing sales continue to maintain strong momentum, there’s a parallel surge in global interest, with developers actively courting the Indian diaspora to tap into a broader demand base.

Favourable currency exchange rates, rising disposable incomes among NRIs, and growing confidence in India’s economic and regulatory environment are turning real estate into a compelling investment avenue. The numbers speak for themselves: NRI investments in Indian real estate have surged by 15–20 percent over the past 20 months.

Their share in the market is expected to reach 20 percent by the end of 2025 — a marked rise from 10–15 percent previously.

This renewed NRI engagement signals more than just sentimental buying — it's a strategic shift toward viewing Indian real estate as a stable, appreciating, and emotionally rooted asset.

What is driving this rush?

India’s strong economic growth, urban expansion, and a more transparent regulatory environment are making real estate a high-confidence asset for NRIs. Reforms like RERA have brought much-needed structure and trust, reducing the risk of remote investments.

Also Read: 5 Best Cities For Real Estate Investment in India

Add to that the depreciating rupee, and the value proposition becomes even stronger. For NRIs earning in dollars, euros, or dirhams, Indian properties — including luxury homes — are significantly more affordable, translating to higher returns.

Beyond returns, real estate offers NRIs an emotional anchor to their homeland. With rental yields rising in key cities and streamlined processes under FEMA and RBI, property investment today is not just easier — it’s smarter, safer, and more rewarding.

Where Are NRIs Placing Their Bets?

NRIs are exploring a diverse range of real estate options — each aligned to different investment goals, risk appetites, and lifestyle aspirations. Residential properties remain the top choice, with apartments, villas, row houses and gated community homes offering both long-term appreciation and steady rental income. In Bengaluru, micro-markets like Hennur, Yelahanka, Whitefield, and the emerging Devanahalli corridor are seeing strong traction from NRI buyers.

Commercial real estate is gaining ground too. Office spaces, retail units, and mixed-use developments in high-growth urban centres are delivering attractive yields, backed by the continued expansion of India’s corporate and retail sectors.

Also Read: Is 2025 the Remarkable Year for Indian Real Estate Investors?

Another fast-rising favourite is plotted developments. With low maintenance requirements and strong capital appreciation potential, land investments are appealing to NRIs seeking flexible, long-term assets. As supply tightens and demand accelerates, plots offer a compelling value proposition — especially for those looking for hassle-free ownership and future customisation.

From compact city apartments to spacious plots on the urban fringe, India’s real estate market offers a well-rounded portfolio of opportunities tailored to every NRI’s investment vision.

Bengaluru – The NRI Investment Hotspot

Bengaluru is a top choice for NRIs, especially those based in the US. Key micro-markets like Hebbal, Hennur, Yelahanka, and Devanahalli attract strong interest due to their airport proximity and major IT hubs.

Strong infrastructure — metro lines, suburban rail, and upcoming ring roads — is fuelling growth. With global firms like Amazon, SAP, and Wipro expanding here, investor confidence is high.

Younger NRIs are opting for gated apartments priced Rs. 1–1.8 crore, while older buyers favour premium homes and villas in the Rs. 3–10 crore range. Bengaluru’s mix of connectivity, opportunity, and lifestyle keeps it firmly on the NRI radar.

The Right Strategy Makes All the Difference

While investing in Indian real estate comes with its share of complexities, the landscape has become far more navigable thanks to regulatory reforms and rising transparency. For NRIs, plotted developments offer a smart, low-maintenance entry point with strong upside. With the right research, legal clarity, and a focus on growth corridors, NRIs can unlock meaningful value — both emotional and financial — in India’s thriving real estate market.

About the Author: Srini Gopalan brings over 25 years of diverse experience to the real estate sector, with a significant focus of more than 15 years dedicated specifically to this industry. He is the Chairman & Co-founder of ArisUnitern RE Solutions, an end-to-end provider of value-added services in the real estate sector. Additionally, he serves as the CEO of Arisinfra.one, a ground-breaking digital platform for construction materials.