NRI Investors Spur Indian Luxury Real Estate Surge Fueled By Emotional Ties With Their Homeland

The Indian luxury real estate market saw non-resident Indians (NRIs) emerge as dominant players in high-end property transactions. As the sector continued its post-pandemic expansion, NRI investments have picked up traction in the Indian real estate market.

According to Akshat Shrivastava, Founder and CEO of Wisdom Hatch, NRIs have steadily increased their footprint in the market over the past decade. "The recent boom in the Indian property market has happened due to NRIs: 2015–2018 = 7–10 per cent, 2019 = 10–12 per cent, 2020 = 12–14 per cent, 2021 = 14–16 per cent, 2022 = 17 per cent (reported), 2023 = 17–18 per cent (industry estimate), 2024 = 17–19 per cent (industry estimate), 2025 = 18–20 per cent (projected, ongoing trend)...," he wrote in a post on X (formerly Twitter).

From a marginal 7–10 per cent share in real estate purchases between 2015 and 2018, NRIs now account for nearly one-fifth of property sales if projections for 2025 hold true.

This shift is primarily driven by emotional ties to their homeland, increasing property values, and a preference for long-term, stable investments. A volatile global economy and currency fluctuations add to the appeal of Indian real estate.

Shrivastava also talked about India's longstanding practice of exporting talent abroad as an indirect economic stimulus. These professionals, after years of generating wealth overseas, are channelling significant capital back into the Indian housing sector.

Adding to the appeal is improved transparency in the real estate market, a stronger rupee, and a tech-enabled home-buying process that makes remote property purchases more seamless than ever. In addition, many developers have adapted their strategies to cater to NRIs' preferences, such as premium gated communities and smoother booking processes.

GRI Club, an international real estate platform, showed momentum in its recent report. For 2024, residential transactions are forecast to exceed Rs 5.1 trillion in the top seven cities, resulting in the sale of more than 300,000 units, as reported by Business Today.

NRIs were participating in significant investments in Tier I cities such as Mumbai, Delhi, Gurugram, and Bengaluru. These cities are known for their modern infrastructure and luxury housing options. Their contribution ranges from 15 per cent to as high as 25 per cent in top-tier projects in these metro areas, the report added.

The trend is evident in the performance of real estate giant DLF, where NRI buyers made up 23 per cent of overall sales in FY24, up sharply from 14 per cent the previous year and just 5 per cent in FY22. Much of this investment is coming from Indian expatriates based in the US, UK, UAE, Canada, and Singapore, regions that host large, affluent diaspora communities, as per the report.