Indian expats in the UAE and Gulf may find this a timely moment to invest in the Indian property market, as major cities show signs of slowing price growth after three years of rapid gains. High demand from local buyers had previously created strong competition for Non-Resident Indians (NRIs), but market dynamics are beginning to shift, according to a report by Gulf News.
The change is prompting many NRIs in the Gulf to re-evaluate whether to invest in Indian real estate or explore property purchases locally in the UAE. “More than ever, Gulf’s NRI buyers are worried whether it makes any sense to buy or build a costly home in India and have it rented out or kept vacant,” said a property advisor.
Another deciding factor is education. Expats increasingly base new home purchases in India on whether their children are pursuing higher studies in the country. Meanwhile, city markets are tightening, especially in the affordable and mid-range segments. “Several cities – including Mumbai, Pune, Hyderabad, Chennai, and Delhi-NCR – are now facing a genuine crunch in entry-level inventory,” said Azaz Motiwala, founder of Ikon Marketing Consultants to Gulf News. “This supply tightening is most evident in the affordable and mid. segments, where steady demand is not being matched by fresh launches.”
While cities like Bengaluru and Hyderabad posted modest 5% price increases in early 2025, they remain below the double-digit gains of previous years. Overall, price growth in most metros has slowed to single digits.
On the investment front, NRIs are also showing interest in fractional ownership of commercial properties, especially in the Rs 1 million to Rs 2.5 million range. These investments are reportedly yielding 8–10% annual returns, according to Anarock.
Mortgage rates have also begun to shift in favor of buyers. “Leading banks in India have reduced their lending rates by 5–10 bps in May 2025 (from the peaks in mid-2024),” said Owen. “However, loan demand is not linked solely to interest rates – overall sentiment, which is significantly influenced by the geopolitical environment, also plays a big role.”
Luxury and ultra-luxury housing continue to dominate new supply. “Driven by steady demand, luxury and ultra-luxury homes – priced from Rs 15 million – dominated new supply in Q1-25 with a 42% share,” Owen added.
With prices cooling, financing improving, and supply shifting, NRIs may find new opportunities in India’s evolving real estate market.
The change is prompting many NRIs in the Gulf to re-evaluate whether to invest in Indian real estate or explore property purchases locally in the UAE. “More than ever, Gulf’s NRI buyers are worried whether it makes any sense to buy or build a costly home in India and have it rented out or kept vacant,” said a property advisor.
Another deciding factor is education. Expats increasingly base new home purchases in India on whether their children are pursuing higher studies in the country. Meanwhile, city markets are tightening, especially in the affordable and mid-range segments. “Several cities – including Mumbai, Pune, Hyderabad, Chennai, and Delhi-NCR – are now facing a genuine crunch in entry-level inventory,” said Azaz Motiwala, founder of Ikon Marketing Consultants to Gulf News. “This supply tightening is most evident in the affordable and mid. segments, where steady demand is not being matched by fresh launches.”
While cities like Bengaluru and Hyderabad posted modest 5% price increases in early 2025, they remain below the double-digit gains of previous years. Overall, price growth in most metros has slowed to single digits.
On the investment front, NRIs are also showing interest in fractional ownership of commercial properties, especially in the Rs 1 million to Rs 2.5 million range. These investments are reportedly yielding 8–10% annual returns, according to Anarock.
Mortgage rates have also begun to shift in favor of buyers. “Leading banks in India have reduced their lending rates by 5–10 bps in May 2025 (from the peaks in mid-2024),” said Owen. “However, loan demand is not linked solely to interest rates – overall sentiment, which is significantly influenced by the geopolitical environment, also plays a big role.”
Luxury and ultra-luxury housing continue to dominate new supply. “Driven by steady demand, luxury and ultra-luxury homes – priced from Rs 15 million – dominated new supply in Q1-25 with a 42% share,” Owen added.
With prices cooling, financing improving, and supply shifting, NRIs may find new opportunities in India’s evolving real estate market.
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