Summary of this article
Many H-1B aspirants and holders are likely to reassess long-term prospects in the US. The cost and uncertainty may lead them to return to India, bringing capital, demand for premium homes and expectations of high standards for lifestyle and amenities.
The proposed $100,000 H-1B visa fee by the U.S. is being seen as more than an immigration barrier — it could end up reshaping global housing demand. While America’s tech hubs brace for a potential cooling in their real estate markets, India’s metros, especially Bengaluru, Hyderabad, Pune, and Gurgaon, appear poised for a luxury housing upcycle.
“For decades, the H-1B programme has been the lifeblood of America’s tech economy and the supply chain for America’s tech workforce. In FY 2024, an estimate 71 per cent of approved petitions were for Indians. This steady flow of young engineers not only fuelled its tech economy but also drove demand for premium housing in US cities. Between 2012 and 2022, San Francisco Bay Area home prices rose more than 110 per cent, significantly higher than the national average,” says Dr Vivek Garg, Founding Director, NVT Quality Lifestyle, and CREDAI Bengaluru’s Governing Board Member.
A $100,000 visa fee, however, alters the equation. Companies may still secure top-tier specialists but the mid-level influx of Indian professionals - the true engine of rental and first-time home demand -- will slow down. Fewer renters and buyers means softer demand in America’s tech housing corridors.
The story will play out differently in India. Beneath the initial alarm lies a silver lining that could well mark a turning point for India’s premium and luxury housing market.
“Many H-1B aspirants and holders are likely to reassess long-term prospects in the US. The cost and uncertainty may lead them to return to India, bringing capital, demand for premium homes and expectations of high standards for lifestyle and amenities,” says Garg, adding that areas catering to luxury buyers - gated communities, villas, premium high-rise apartments - may see relative outperformance. “Returning professionals are seeking not just homes but lifestyle ecosystems integrated with smart homes, sustainable and environment friendly features, private clubs, etc,” he adds.
Mayank Arora, Partner, Chambers of Bharat Chugh, informs that the U.S. administration’s new proclamation imposing a $100,000 fee on H-1B petitions has created a sudden uncertainty for Indian professionals, including their employers. From a macro perspective, the short-term India impact could even be real. Such move to increase the cost of H1-B makes it significantly more expensive for U.S. companies to hire or retain Indian professionals.
For many employers, especially mid-sized firms and startups, absorbing this cost will virtually be unviable. As a result, fewer fresh H-1B petitions may be filed, and even some existing employees abroad may be asked to relocate back to India.
“In such a scenario, India is likely to see a larger-than-usual reverse migration of skilled NRIs. These NRIs who have been living in the US for a long time are typically mid-career to senior professionals and executives, with accumulated dollar savings and exposure to global standards of living. When and if they return back to India, a natural step for them may be to invest in real estate — both for residential purposes and even for investment as a stable asset class in India. Those of them who were earlier shy of investing in the Indian real estate sector for want of someone to manage the property for them in India, may also want to participate in the bull-run in the Indian real estate sector,” Arora says.
Given their global taste, these NRIs may look for high-end homes in metropolitan cities (Delhi-NCR, Mumbai, Bangalore, Hyderabad) for residence. This can push up demand and prices in the luxury and upper-premium categories.
However, “with civic issues galore in the big cities coupled with pollution, traffic and water logging episodes, many families may look at settling in emerging Tier-2 cities as well. Increased NRI-driven demand could further create an upward pressure on prices,” says Arora.
According to industry experts, the hefty hike in H-1B visa fees has introduced a new dynamic with a two-fold impact on India’s real estate market. First, US-based companies are rethinking the economics of hiring Indian talent overseas. With sharply higher costs to onboard professionals on-site, many are accelerating the expansion of their Global Capability Centers (GCCs) in India.
“This trend is set to drive robust demand for commercial real estate, especially premium office spaces in the country’s tech hubs, as global firms increasingly bring the work to where the talent resides,” says Anupam Rastogi, Co-Founder & CBO, NRI Real Estate, Square Yards.
Secondly, the policy could spark a ‘reverse brain drain.’ “As opportunities in the US become more restrictive, a growing number of skilled NRI professionals may either return to India or decide not to leave in the first place. Their return, coupled with higher purchasing power, is likely to boost demand for premium residential properties that meet international living standards. While it is too early to draw conclusions, we believe these shifts will influence both the commercial and residential segments of India’s real estate market,” Rastogi adds.
The U.S. visa overhaul with Gold and Platinum Cards is a clear signal: global mobility now walks hand-in-hand with global investment.
Says Akash Puri, Director-International, India Sotheby’s International Realty: “While the ultra-wealthy may embrace these shiny new pathways, higher H-1B costs could push top talent to look beyond America’s borders. For luxury real estate, that means fresh demand shifting toward global cities and markets that deliver stability, access, and lifestyle. Add in the Fed’s 25-basis-point rate cut, and you’ve got a recipe for renewed liquidity — and real estate once again taking center stage as the asset class of choice for global investors.”
“The NCR real estate is rapidly evolving beyond remittance-driven demand. The inherent strength of our market is now defined by transformative projects like the Noida International Airport and extensive improvements in connectivity, which are creating new economic corridors and stimulating organic growth. While visa changes may affect certain segments, India’s compelling economic story ensures continued corporate investment and talent retention. This will substantiate demand for quality residential and commercial spaces,” says Sunny Katyal, Co-Founder, Investors Clinic.
Depending on where this is finally headed, given the current ambiguity, this can potentially boost domestic talent retention and therefore local purchasing power.
Also, “commercial real estate can benefit significantly as corporates expand their offshoring strategies. GCCs may potentially witness a significant boost in their office space absorption. We can also expect NRIs' investment focus to shift strongly toward India's real estate market, supported by robust remittances and the unfolding field of opportunity in tier-2 cities,” says Peush Jain, Managing Director - Commercial Leasing and Advisory, ANAROCK.
Throwing some caution to the wind, however, Arora notes that President Trump has previously praised high-skilled immigration and the H-1B regime, and carries a track record of tactical U-turns when his trade or diplomatic goals are met. A partial or full U-turn on this H-1B issue could cool the real-estate euphoria even before it begins.
“This coupled with the fact that court scrutiny is already underway over the proclamation’s statutory basis, and the courts in the US may suspend enforcement of this move altogether,” he adds.
Whatever be the case, experts advise policymakers on both sides to aim for predictability since families typically plan real estate investments on multi-year horizons, not week-to-week headlines!
