The Role of NRIs in India’s Real Estate Market: Why It Still Matters in 2025

Introduction

When most people think about the connection NRIs (Non-Resident Indians) have with India, it's usually wrapped in emotional family back home, festive visits, childhood memories, or a deep-rooted love for culture and tradition. But there’s another thread quietly weaving itself into that connection over the past two decades: real estate.

And in 2025, this isn’t just a quiet trend anymore it’s a movement.

At Tytil.com, our mission has always been to make real estate easier to understand for everyday buyers. So let’s unpack why NRIs are still so invested in Indian property, and more importantly, what it means for both global Indians and domestic investors.

You’d think NRIs invest in Indian real estate just for the profits, right? That’s only part of the story. If you sit down with someone living in London, Dubai, or New York who’s bought a flat back in India, you’ll often hear something else in their voice, something personal.

Let’s be honest: for most NRIs, buying property in India isn’t a cold, numbers-only decision. It’s a mix of emotion, opportunity, and future planning that plays out differently for each person.

Here’s a closer look at what really drives the decision. 

1. It’s About Staying Connected to Home

Ask around, and you’ll hear this one a lot. “I just wanted something of my own back home,” or “It feels good knowing there’s a place for me there.”

Whether it’s an apartment in the city they grew up in, a plot near their ancestral village, or a modern flat in a metro they’re not always buying for now. Some are thinking about retirement, others want a place for their parents, and some just want to hold onto something familiar in an ever-changing world.

It’s not always logical and that’s the point. It’s about comfort.

2. Currency Plays a Quiet but Big Role

This part is a bit more calculated. When the rupee is down against the dollar, euro, or pound, Indian real estate suddenly looks like a bargain.

An NRI earning abroad often finds they can afford a far better home in India than in their country of residence. A one-bedroom flat in London might cost more than a spacious 3BHK in Pune or Hyderabad. That’s hard to ignore.

So even if the goal isn’t to move back right away, it makes sense to buy when the exchange rate is in their favor.

3. Growth Potential Is Still Alive in Pockets

Let’s not pretend all of India’s real estate market is booming. It’s not. But smart NRIs aren’t chasing every headline they’re zooming in on areas that are still growing.

Think about places where tech parks are coming up, where infrastructure projects are underway, or where rental demand is climbing. An early investment in one of these areas can turn out to be far more rewarding than putting money into a property in an already-saturated market overseas.

It’s about knowing where to look and acting before prices shoot up.

4. Rental Income Helps Offset the Cost

Not every NRI wants to keep their property locked up for years. In cities like Bangalore, Chennai, and Mumbai, rental demand hasn’t slowed down—if anything, it’s evolved.

Young professionals, digital nomads, students, and even small families are constantly looking for well-maintained homes, especially in prime areas. If the property is managed well, the rental income can take care of maintenance costs or even bring in a steady side income.

Thanks to property management companies, NRIs don’t need to worry about chasing tenants or fixing leaky pipes from halfway across the world.

Where Are NRIs Investing?

Bengaluru
Many NRIs working in tech (especially in the US or Europe) originally come from Bengaluru. A lot of them are now putting money back into the city—buying properties either for their families or as future investments.
 

Hyderabad
With its clean governance, improving infrastructure, and booming IT sector, Hyderabad has become a favorite. Prices are still relatively reasonable, and the city feels like it's just getting started.
 

Pune
Between its thriving startup scene and solid education hubs, Pune attracts both young NRIs and those planning for their kids’ future. It also helps that it’s calmer than Mumbai but still well connected.
 

Gurgaon & Noida (NCR Region)
The demand here is steady, especially among NRIs with business or family links in North India. Despite the ups and downs, people continue to see value in well-positioned properties around Delhi.

Kerala & Gujarat
In both states, the NRI connection runs deep. Many Gulf-based Indians, in particular, have emotional and family ties here—and real estate remains a popular way to maintain that bond. Think retirement homes, ancestral properties, and vacation houses.

What Are NRIs Actually Buying?

While the typical NRI buyer has long been associated with residential apartments, the landscape is shifting. The interest is broader now and in many cases, a lot more strategic.

Here’s what’s trending among NRI buyers in 2025:

Luxury Villas and High-End Flats
Think gated communities, private terraces, and top-tier amenities. There’s a growing demand for comfort and privacy, especially from NRIs who visit India often or plan to return eventually.

Vacation Homes or Holiday Villas
Goa, the Nilgiris, parts of Himachal  many NRIs are picking up second homes purely for occasional getaways, or even short-term rentals when they're not using them.

Pre-leased Commercial Properties
This one's purely for investment. Offices or retail units that already have tenants offer steady rental income without the headache of finding someone to lease it out.
 

Plots for Custom-Built Homes
Some NRIs aren’t just buying ready-to-move-in spaces they want to build from scratch. Whether it's a retirement plan or a dream home project, plots are gaining traction again, especially in suburban pockets.

Things NRIs Should Watch Out For

That said, not everything is rosy. NRIs like any buyer need to be cautious. Here’s what to keep in mind:

Double-check the developer’s RERA registration
Get all property documents reviewed by a legal expert
Understand tax implications (TDS, rental income, capital gains)
Be wary of flashy offers that promise too much too soon
If possible, appoint a trustworthy local power of attorney (POA)
 

If you’re an NRI thinking about buying property back home, here are a few down-to-earth tips that can really help you make the right call.

1. Keep an Eye on Growth Corridors
Look for areas where the government or private players are pumping in infrastructure, new

 metro lines, highways, tech parks, stuff like that. These places usually grow faster and hold their value better. It’s like planting a seed where the soil’s already fertile.

2. Buy What You Can Actually Manage
It’s easy to get swept away by emotions and buy a place just because it “feels right.” But if you’re not going to live there or rent it out, it could just become a money pit. Be honest with yourself about what you can handle from afar.

3. Think Long-Term
Real estate isn’t a quick flip game especially if you’re overseas. If you don’t plan to sell or move in within the next 5 to 10 years, renting it out can be a smart way to keep the property working for you instead of just sitting empty.

4. Ask for Escrow-Based Projects
Make sure your money is safe. When you invest, check if the builder uses an escrow account for your unit. That way, your payment goes only toward your property and not elsewhere. It’s a good way to avoid unpleasant surprises.