Amid stock market volatility, NRIs turn to luxury realty for stable returns

Delhi NCR region stood out as the only top-tier city to register positive growth in new home sales in Q4 (Oct-Dec 2024), with 9,808 units sold-up from 6,528 units in the same period last year.

In the face of ongoing global market volatility and corrections in equities, Non-Resident Indians (NRIs) are increasingly turning to India's luxury real estate sector as a safer and more rewarding investment avenue. 

 

The Indian real estate market is projected to grow at a compound annual growth rate (CAGR) of 9–11% and surpass $1 trillion by 2030, driven by urbanization, infrastructure expansion, and rising demand for premium housing.  "The real estate sector is not only outperforming expectations but is on track to deliver its third consecutive record-breaking year in sales. In the top seven cities, total residential sales in 2024 are projected to exceed INR 5.1 trillion, with more than 300,000 units sold," said a report by GRI Club, an international real estate company. The report stated that cities such as Mumbai, Gurgaon, and Bangalore have seen particularly high demand for ultra-luxury residences, with absorption rates reaching new heights. The trend reflects a growing preference among buyers for high-end, amenity-rich homes that offer exclusivity and superior lifestyle features.  Developers report that NRIs now account for 15–25% of investments in newly launched projects, underlining their growing interest. ​Cities like Gurugram, Delhi, Mumbai, and Bengaluru remain top choices due to their modern infrastructure, economic vibrancy, and high-end living spaces. For instance, DLF Limited's recent super-luxury offering, The Dahlias, announced pre-formal launch sales of Rs 11,816 crore, with 12% coming from NRIs as of January 27, 2025. 

 

 

Factors Driving NRI Investments:

Several factors contribute to the growing wave of NRI investments:

 

Depreciating Rupee: A weaker rupee enhances the value of NRI investments in India.​

 

Government Initiatives: Simplified tax regimes and benefits like indexation have made investing in India more appealing.​

 

Developer Offerings: Luxury amenities, digital transactions, and flexible payment plans cater to NRI preferences.​

 

Regional Insights:

 

Gurugram: Gurugram has solidified its status as a premier NRI investment destination. Leading developers like DLF Limited have reported a sharp increase in NRI contributions, signaling growing trust in the Indian realty market. ​

 

Mumbai: Mumbai is now among the top 10 luxury residential markets globally, ranked 8th in terms of price growth in luxury housing. The city has seen a 10% year-on-year growth in luxury residential prices. 

 

Bengaluru and Delhi: Both cities have demonstrated positive momentum, with Delhi improving its rank to 37th and Bengaluru to 59th in the global luxury housing market. ​

 

 "NRIs from the United States, United Kingdom, United Arab Emirates, Canada, and Singapore have shown the highest interest in Indian real estate. These regions host affluent Indian communities with the financial capacity and aspiration to invest in high-value properties. NRIs accounted for 23% of DLF’s total sales in FY24, the highest in recent years. This marks a substantial rise from 14% in FY23 and 5% in FY22. Additionally, in specific projects like Privana West in Gurugram, nearly 27% of units were bought by NRIs, underscoring their strong preference for luxury living," said Aakash Ohri, joint managing director and CBO, DLF Home Developers Ltd. 

 

Housing sales in India’s eight prime residential markets dipped 26% in the October-December period of 2024 when compared to the same quarter last year, according to a report by digital real estate transaction & advisory platform PropTiger.com. However, Delhi NCR market stood out as the only region among the top eight cities to register positive growth in new home sales, with 9,808 units sold in Q4 (Oct-Dec 2024), a significant rise from 6,528 units in the same period last year.

 

Among the most favored locations in Northern India, the tri-city region of Chandigarh, Mohali, and Panchkula stands out as a prime destination for NRI investments.

 

“As global markets remain unpredictable, we’re seeing a clear and growing preference among NRIs for India’s luxury real estate as a stable and appreciating asset class. This shift is not just a reaction to volatility in equities—it reflects a broader confidence in India’s economic trajectory and the value our premium real estate markets offer. The growth momentum in cities like Gurugram reinforces our commitment to deliver high-quality developments that meet the aspirations of global Indians looking for both investment security and elevated lifestyles.”, said Ankush Kaul, President - Sales, Marketing & CRM, Central Park..   

Delhi-NCR has pipped Mumbai and Hyderabad to emerge as the top selling housing market across nine cities in 2024 owing to 66% growth in sales value in Gurugram alone. With this, Delhi-NCR has breached the ₹1 lakh crore sales value threshold, a report by PropEquity noted. 

 

The total sales value of Delhi-NCR rose by 63% in 2024 to ₹1.53 lakh crore while that of Mumbai stood at ₹1.38 lakh crore, up 13% and Hyderabad at ₹1.05 lakh crore, down 18%, according to a report by NSE-listed real estate data analytics firm PropEquity.Gurugram housing market witnessed strong demand for luxury homes last year with sales rising 66% to nearly ₹1.07 lakh crore last year from ₹64,314 crore in 2023 calendar year, according to PropEquity. The total sales value of Gurugram, at ₹64,314 crore in 2023, was nearly half of Hyderabad with the former surpassing the latter in 2024. 

In response to lukewarm domestic sales, developers are organizing roadshows in countries with large Indian diaspora populations, such as the US, UK, Australia, Singapore, and Dubai, to attract NRI buyers .​ 

This strategic focus on NRIs underscores their growing influence in India's real estate market, especially in the luxury segment, as developers seek to leverage the purchasing power of the Indian diaspora.​ 

Apart from individual buyers, family offices and institutional investors are also expanding their investments in luxury real estate. Many are channeling funds into structured real estate investments and alternative financial instruments, viewing luxury properties as a stable and appreciating asset class, especially amid stock market fluctuations.

 

 "Many of these investors are deploying capital into structured real estate funds and alternative investment vehicles, viewing luxury properties as a stable, appreciating asset class amid stock market volatility. NRIs, in particular, are playing a key role in this expansion," said the GRI Club report.