Rupee fall boosts NRI investments in luxury and ultra-luxury properties

Non-Resident Indians (NRIs) have increased investments in luxury and ultra-luxury properties over the last year, owing largely to the depreciation of the Rupee, which has in turn enhanced their purchasing power.

 

Several realty majors like DLF, BPTP, Mahindra Lifespaces, Rustomjee group and more, have seen an increase in share of NRI investments in their offerings, with market watchers expecting the trend to continue in 2025 as well.

 

“In specific projects like Privana West in Gurugram, nearly 27 per cent of units were bought by NRIs, underscoring their strong preference for luxury living,” said Aakash Ohri, joint managing director and chief business officer of DLF Homes.

 

DLF, India’s largest real estate developer, has seen NRIs account for 23 per cent of its total sales in financial year (FY) 2023-24, a substantial rise from 14 per cent in FY23 and 5 per cent in FY22, the company revealed, adding that its latest high-end luxury project Dahlias in Gurugram has also seen a notable interest from this category.

 

“We anticipate a significant rise in NRI contributions, which is why we ensure that a considerable portion of our new launches is strategically allocated to this discerning investor segment,” Ohri added.

 

Harinder Dhillon, senior vice-president (sales) for Delhi NCR-based BPTP Group said that approximately 10 per cent of their total sales have come from NRIs. BPTP’s latest Gurugram based luxury project Amstoria Verti-Greens, where homes are upwards of ₹3 crore, saw ₹1,500 crore worth of inventory bookings on its first day last week.

 

Rakesh Setia, president of Sales and Marketing, Rustomjee Group (Keystone Realtors), added that nearly 20 to 25 per cent of their luxury and uber-luxury sales over the past year have come from NRIs, with projects like Rustomjee Crown in Prabhadevi, Rustomjee Belle Vie, and Rustomjee Paramount in Bandra witnessing strong traction.

 

In the last one year, the Rupee has depreciated by 4.7 per cent against the US dollar, falling from 82.79 in March 2024 to around 86.88 on March 7, 2025.

 

A weakened Rupee offers NRIs an exchange rate advantage, effectively reducing the cost of investment in India, making high-end real estate more affordable for international buyers, industry watchers said, noting that the liquidity was making luxury properties an avenue for investments as opposed to the typical trend of purchases made towards end-use. 

 

Setia pointed to a recent Anarock report which showed that NRI demand had risen by 15-20 per cent over the past 20 months, with their share in total real estate investments expected to reach 20 per cent by the end of 2025, up from 10-15 per cent.

 

“The ease of digital transactions and transparent regulations will further strengthen India’s position as a preferred market for NRI investors,” he said, adding that integrated living spaces that offer rental yields and long-term appreciation in Mumbai and Bangalore were leading the demand.

 

NRIs from the United States, United Kingdom, United Arab Emirates, Canada, and Singapore have shown the highest interest in Indian real estate, several industry reports reveal. Among the cities, Bengaluru, Delhi-NCR, Hyderabad, Mumbai Metropolitan Region and Pune take up majority of the investments coming from NRIs, as they offer substantial capital appreciation and rental income potential. Delhi-NCR, Mumbai, and Hyderabad dominate the luxury market, making up almost 90 per cent of all luxury sales in the top seven cities.

 

Anuj Puri, chairman at property consultants Anarock, pointed to its internal survey trends of NRIs preferring luxury and uber-luxury projects over other categories. At least 75 per cent of its NRI respondents preferred properties costing more than ₹90 lakh, 47 per cent preferred premium homes within ₹90 lakh and ₹1.5 crore, followed by 21 per cent in luxury properties priced between ₹1.5 crore to Rs 2.5 crore. “Another 10 per cent wanted to buy ultra-luxury homes priced more than ₹2.5 crore,” Puri said.

 

CBRE Chairman and CEO Anshuman Magazine pointed to the volatility in equity markets which was leading to more investments into the Indian real estate, expanding the asset class and at the same time diversifying investor portfolios.

 

“Government initiatives like Rera have boosted market transparency and investor confidence… development of infrastructure projects, such as new airports and highways, has further enhanced the appeal of certain regions, promising future appreciation in property values,” he added.

 

Industry executives believe that NRI investments are expected to increase further in 2025, with rapid infrastructure additions, job opportunities, and high demand for residential and commercial properties.

 

"We have seen a notable increase in NRI interest in recent months, not just in the luxury segment but also in mid-premium and premium housing. Many NRIs are investing to provide their families with a better lifestyle in a safe, well-connected, and sustainable urban environment. This trend reflects their confidence in India’s real estate market and the long-term value it offers,” said Vimalendra Singh, chief business officer - Residential at Mahindra Lifespace Developers Ltd.

 

Puri added that NRIs that were looking to exit from the market currently can be at a disadvantage as they will get less value in dollar terms.

 

DLF’s Ohri added that superior products and secure investment opportunities by developers will continue to attract substantial NRI capital to India, particularly as the Indian economy remains on an upward trajectory. 

ON SPENDING SPREE

 

NRIs from the US, UK, UAE, Canada, and Singapore, have shown the highest interest in Indian real estate, several industry reports revealed

 

DLF has seen NRIs account for 23% of its total sales in FY24, a substantial rise from 14% in FY23 and 5% in FY22, the company revealed

 

Several realty majors like DLF, BPTP, Mahindra Lifespaces, have seen an increase in share of NRI investments in their offerings

 

Anarock report showed that NRI demand had risen by 15-20% over the past 20 months