Bengaluru continues to maintain its status as the top choice for Non-Resident Indians (NRIs) looking to invest in India’s residential real estate market especially in the budget and mid-segment, a recent report has claimed.
Renowned for its pleasant weather, cosmopolitan culture, and high rental yields, Bengaluru offers more than just a favorable climate. As published by the Hindustan Times, the city also boasts a thriving commercial landscape that attracts NRIs seeking both investment opportunities and quality of life enhancements.
Unlike the domestic market, where end-users dominate sales, Bengaluru’s appeal to NRIs lies predominantly in its investment potential. According to Cushman & Wakefield, approximately 65% of NRI transactions in the city are driven by investment motives, underscoring its role as a wealth creation hub through real estate.
Key locales such as Whitefield, Sarjapur Road, Thanisandra, and Kanakapura Road emerge as favored spots among NRI investors. These areas not only offer proximity to IT corridors but also feature developments by reputable developers, ensuring sustained rental demand and capital appreciation.
Contrary to popular belief, NRIs in Bengaluru display a marked preference for affordable and mid-segment housing. Units priced under ₹1 crore attract approximately 69% of transactions facilitated by platforms like SquareYards.com, indicating a strategic focus on value-driven investments.
From compact 2 BHKs to spacious 3 BHK units, the demand spectrum reflects diverse preferences among NRIs, ranging from clerical workers seeking rental income to C-suite executives eyeing upscale villas.
Despite robust demand, Bengaluru still grapples with infrastructural issues and traffic congestion, which remain key concerns for NRI investors. Addressing these challenges is crucial to sustaining investor confidence and maximizing the city’s real estate potential.