NRI Investment Rise Toasts Indian Real Estate Market

India’s real estate market has increasingly attracted Non-Resident Indians (NRIs), establishing itself as a reliable and rewarding investment destination. Amid global economic uncertainties, India has proven to be a beacon of stability and growth for real estate investments.

Looking at the data points, NRI investment in Indian real estate continues its robust trajectory, reaching $14.9 billion in 2024 with projections of $16.3 billion for 2025, growing at 9.2 per cent annually. This capital primarily flows into Mumbai (31 per cent), Bangalore (23 per cent), and Delhi-NCR (19 per cent), with traditional direct property investments capturing the largest share at $9.7 billion (65 per cent of total investment). Commercial properties have emerged as the preferred asset class, delivering superior returns of 7.9-10.2 per cent in rental yields versus 3.8-5.2 per cent for residential properties. The investment landscape has diversified significantly with REITs gaining substantial traction.

Most notably, fractional ownership platforms have experienced explosive growth of 71 per cent in 2024, with NRIs contributing $2.5 billion (52 per cent of this segment) and generating projected returns of 8.9-13.2 per cent.

Regulatory developments, including RERA implementation and new SEBI guidelines for fractional ownership established in March 2024, have bolstered investor confidence, creating a

NRIs are increasingly driving momentum in India’s property market. Shifts in global financial trends and rapid changes within India’s real estate landscape have created an attractive window for overseas Indians to invest back home.

A key trigger behind this surge is the continued slide of the Indian rupee. For NRIs earning in foreign currencies such as the US dollar, pound sterling, or euro, the weaker rupee effectively stretches their purchasing power. This currency edge enables them to acquire high-end properties in India at more affordable rates when compared to domestic buyers, making real estate a compelling long-term investment option.

Elaborating on the issue, Akshat Shrivastava, founder of Wisdom Hatch, said that public opinion is being misdirected — blaming NRIs for rising real estate prices, housing unaffordability, when the root issues lie elsewhere.

He said the real issue is structural — low domestic wages, stagnant job creation, and a policy ecosystem that struggles to attract high-value businesses. India’s economic model, in many ways, remains suspicious of wealth creation. He said NRIs can afford homes because they earn in stronger currencies. The average Indian can’t afford property not because of NRIs, but because domestic wages are low. it is our fault that we are unable to attract high quality businesses that pay well. We have become a socialist state, that despises wealth. Tagging NRI's as your new enemy is not the answer.

Investing in Indian real estate presents NRIs with a strategic opportunity to diversify their investment portfolio. While many choose to invest in stocks, mutual funds, or real estate abroad, the Indian market offers a balanced risk and return profile.