Why NRIs Are Rethinking Property Back Home?
By Naveen Kumar, Director at Triverse Homes
Something has shifted in the way NRIs buy property in India. For years it was often a heart decision: a flat in the hometown, a plot "for later," something to show the family. That's changing. More and more, Indian real estate is becoming a planned part of a long-term wealth strategy, chosen with the same care you'd give a stock or a fund.
Let's start with the obvious one. The rupee is above ₹90 to the dollar this year. If you earn in dollars, pounds, euros or dirhams, your money simply goes further here than it did a few years ago. The bigger picture looks encouraging too. ANAROCK expects Indian real estate to become a $1 trillion market by 2030. A cheaper entry point into a growing market is hard to ignore.
Start with the "why," then pick the property
This is where the smarter buyers stand out. They don't start by asking "what's available?" They ask "what is this for?"
Maybe you want a rupee asset as a hedge. Maybe it's rental income while you're abroad, a home to retire into, or a comfortable place for your parents right now. Each goal points to a different kind of investment. For first-timers, apartments on the edges of big cities are still the usual starting point. If steady income is the priority, commercial REITs and Grade-A office space make more sense. If you're patient and thinking decades ahead, land can work.
We're also seeing NRIs look beyond the metros. Indore, Jaipur, Coimbatore and Lucknow are showing up in portfolios this year. One word of caution, though: selling in these cities can take longer, so go in with a long horizon.
You don't have to own the whole building anymore
Owning property directly from abroad isn't easy. Your money gets locked up, the paperwork under FEMA can get tangled, and someone has to deal with tenants, repairs and the society office. Understandably, many NRIs are tired of that.
That's why REITs, InvITs and the newer small and medium REITs are getting so much attention. Instead of owning one flat outright, you own a slice of a professionally managed portfolio of income-earning property. You get rent-like income and none of the midnight calls about a leaking pipe. RBI and SEBI rules allow NRIs to invest in these.
Let's be honest about returns
Property is a good asset, but rental income on its own rarely makes anyone rich. Anarock data from early 2024 put gross residential rental yields at roughly 2.65% in Kolkata to 4.45% in Bengaluru. For non-residents, 30% TDS is deducted on rent at source, before surcharge and cess. After that, your net yield can trail a sensible mix of equity and debt by quite a margin.
It's also worth thinking about the exit before you buy. NRIs can take up to $1 million a year in sale proceeds out of India, provided FEMA rules are followed. Farmland doesn't qualify.
So what does this mean for you?
India is still one of the most compelling places for NRIs to put their money, and the demand sho
Naveen Kumar
Naveen Kumar is a Director at Triverse Homes with more than 16 years in real estate. He has an in-depth understanding of the market, from how projects are priced and launched to what drives their value on resale.
He is especially strong on HUDA (now HSVP) regulations and RERA: licences, approvals, allotment and transfer rules, and the rights buyers have when timelines slip. In his updates he explains what each change in the market or the law means in practice for anyone buying, selling or investing in Gurgaon.
