NRIs drive boom for residential property management firms amid mkt uptick

Infra push, regulatory ease and rising rental incomes sees spike in asset management inquiries

A consistent rise in investments of non-resident Indians (NRIs) in the domestic residential market is triggering a strong demand for India-based property management firms, as overseas buyers seek professional support to manage assets from afar. 

Industry experts said enquiries from NRIs have climbed sharply over the past two to three years, driven by India’s infrastructure upgrades, ease of regulation under Real Estate Regulatory Authority (RERA), and a premiumisation of housing supply in key cities. Strengthening dollar and rupee volatility have made Indian real estate relatively cheaper for overseas investors, enhancing return expectations. 

NRIWay said that NRI investments accounted for about 18 per cent of the total real-estate investments today, up from around 15 per cent in 2022, as per industry estimates. This share is expected to rise to nearly 20 per cent by 2026 and potentially 25-26 per cent by 2030. 

“NRIs contribute a significant share of investments in residential projects across India’s top cities, and this is expected to rise as confidence in the housing market continues to strengthen,” noted Shalin Raina, managing director, residential services, Cushman & Wakefield, a real-estate consultant firm in India. 

In India, the property management firms that ranged from international property consultants, such as services provided by Cushman & Wakefield to start-ups, were witnessing faster growth in their NRI verticals than in their domestic portfolios. 

Pryank Agarwal, founder and chief executive officer (CEO) of Maharashtra-headquartered Housewise, said that the company has witnessed enquiries from NRIs increasing by nearly 50 per cent on an annual basis over the past few years. “Almost 80 per cent of our customers today are NRIs, with resident Indians accounting for the remaining 20 per cent,” he said. 

On the contrary, Pune-based NRIWay said that demand from NRIs for his firm has grown at a compound annual growth rate (CAGR) of about 12 per cent. NRIs account for roughly 40 per cent of its overall portfolio. 

“The demand is largely seen from the US, the UK and Australia, as well as the Middle East, which together contribute a bulk of overseas enquiries. On the domestic front, while Tier-I cities such as Mumbai, Delhi-NCR, Bengaluru and Hyderabad remain key markets, Tier-II cities are emerging as new growth centres. Pune, Nagpur, Indore, Jaipur, Kochi and Coimbatore have seen accelerated traction in the past couple of years from NRIs,” said Bharat Lodha, CEO of NRIWay. 

Moreover, industry experts suggested that the primary motivation for NRIs to engage property management firms was rental income, followed by resale assistance and ongoing maintenance. Ticket sizes varied widely across the nation. Lodha noted that properties managed for NRIs ranged from ₹30 lakh to  ₹10 crore. In Tier-II cities, the range is about ₹30 lakh to ₹3 crore, while in Tier-II markets it spanned nearly ₹60 lakh to ₹10 crore. 

Rental yields in prime residential locations in Tier-I cities are currently weighing at 3-5 per cent, with capital appreciation running at 7-10 per cent CAGR, translating into total returns of roughly 10-15 per cent. 

Despite strong momentum, executives cited structural gaps. Trust deficits with local brokers and uneven regulation in rental and resale remained a concern. Industry players said that RERA-like oversight and more owner-friendly tenancy laws would enhance transparency and fuel overseas investor confidence. Looking ahead, firms expected the demand to remain robust over the next couple of years, aided by continued migration of Indians overseas and the perception of property as a relatively safe asset.  

Realty upsurge

• NRIs’ share in real-estate investments up from 15% (2022) to 18% now
• It is projected to reach 20% by 2026 and 25–26% by 2030
• Rental income, resale assistance, and property maintenance are the primary motivations for NRIs
• US, UK, Australia, and Middle East drive bulk of enquiries
• Tier I cities like New Delhi and Mumbai, and Tier II cities like Pune and Nagpur are hot destinations