Earning abroad, bumper profit on Indian soil! Why are NRIs buying property indiscriminately in Indian cities and in which cities are they getting the highest returns? Know the full report

The interest of Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs) in the Indian real estate market has reached an all-time high. The strength of the Indian rupee against the dollar and Gulf currencies and the country’s strong economic growth have made it an extremely lucrative deal for Indians living abroad to buy property in their homeland. NRI investors are investing heavily in premium residential and commercial properties across India’s metros and tier-II cities, not only to stay connected to their roots or plan for a future return, but also to seek robust capital appreciation and strong rental income.

These cities became the first choice of migrants (local market trend)

In terms of investment, the country’s major tech and business hubs remain the most preferred destinations for NRI buyers. The premium and luxury housing segment is in highest demand in Mumbai Metropolitan Region (MMR) and Bengaluru. At the same time, Pune (Hinjawadi, Kharadi, Baner) and Hyderabad (Gachibowli, Hitech City, Kokapet) are offering attractive rental yields of 3 to 5 percent to NRI investors due to their strong IT corridors and better entry prices. In Delhi-NCR, Gurugram’s Dwarka Expressway and Noida’s Sector 150 remain the top hotspots due to the connectivity with Jewar International Airport. Apart from this, cities like Navi Mumbai, Gift City of Ahmedabad, Kolkata, Chennai and Coimbatore have also seen a rapid increase in the trend of migrants seeking long-term returns and stable rental income.

Mathematics of investment: Where and why are we getting record returns?

According to reports, the share of NRIs in the sales of luxury and premium homes priced above Rs 1.5 crore in Indian cities is continuously increasing. NRI investors are mainly preferring ready-to-move-in properties and gated communities from reputed developers with world-class amenities and better maintenance. While established markets like Mumbai and Gurugram are witnessing strong appreciation in property prices, rental yields in cities like Kolkata and Hyderabad remain strong due to moderate prices and high occupancy.

Legal and financial process under RBI and FEMA rules

Any NRI or OCI can purchase residential or commercial property in India without any special permission under the guidelines of Reserve Bank of India (RBI) and Foreign Exchange Management Act (FEMA). However, they are not allowed to purchase agricultural land, farmhouses or plantations unless it is inherited. Investors sitting abroad can authorize a trusted relative or representative in India through a Power of Attorney (PoA). Along with this, NRE (Non-Resident External) or NRO (Non-Resident Ordinary) bank accounts are used for transactions. Experts recommend that you must complete RERA registration and legal title verification before purchasing a property.