BENGALURU — North Bengaluru has emerged as a prime location for U.S.-based non-resident Indians (NRIs) seeking to invest in real estate, with a growing preference for gated housing complexes and luxury villas, according to industry experts, as published by Hindustan Times.
Aniket Chawla (name changed), a tech professional currently residing in the U.S., recently purchased a ₹3 crore flat in a luxury complex in Yelahanka, a northern suburb of Bengaluru. The 2,000-square-foot apartment, which he plans to use as a second home until he returns to India, reflects his long-term investment strategy. “I’ve invested in this property for end-use,” said Chawla, who is in his mid-50s.
Sandeep Shekhar (name changed), another U.S.-based NRI, plans to diversify his portfolio by purchasing an apartment in Bengaluru. However, he plans to exit the investment in a couple of years after earning a 6% rental return. “I’ll be exiting after having enjoyed a good rental income,” said Shekhar, who has lived on the U.S. East Coast for almost a decade.
The depreciation of the Indian rupee against the U.S. dollar is one of the key factors propelling U.S.-based NRIs to invest in Indian real estate. A weaker rupee increases the purchasing power of NRIs earning in stronger currencies like the U.S. dollar, making real estate more affordable.
Manjesh S. Rao, Chief Real Estate Officer at BrokerInBlue, notes that a significant share of NRI transactions in Bengaluru’s real estate market comes from U.S.-based investors. “Many of my clients aspire to buy a home here and eventually move back to India. Several finalize the purchase while in the U.S. and only fly to Bengaluru for registration,” Rao explained.
According to a survey by NoBroker.com, North Bengaluru is the most popular destination for NRI investments in Bengaluru, with nearly 39.7% of NRIs choosing the area. East Bengaluru follows with 37.7%, while South Bengaluru accounts for 18.1%. The key attraction of North Bengaluru lies in its proximity to Kempegowda International Airport, which reduces travel time compared to southern and eastern parts of the city.
“North Bengaluru’s appeal has increased due to major infrastructure developments, such as the metro line linking the northern and southern parts of the city, as well as new projects like the Peripheral Ring Road,” said Sunil Singh, director at Realty Corps. The area’s attractiveness has also been bolstered by the development of Manyata Tech Park and the presence of multinational corporations, including Amazon India, SAP Labs, and Wipro, who have either leased space or started building campuses in the region.
Almost all brokers interviewed for this article confirmed that U.S.-based NRIs are predominantly interested in buying apartments in gated communities. Young NRIs, typically under 40, prefer investing in apartments priced between ₹1 crore and ₹1.8 crore. However, some older NRIs, particularly those in their mid-50s or older, tend to invest in more premium projects priced between ₹3 crore and ₹6 crore.
“We are also seeing several NRIs investing in luxury projects priced at ₹6 crore and above,” noted Kumar, a local broker. “These buyers are typically in their mid-50s or older and seek higher-end properties.”
The demand for luxury villas among U.S.-based NRIs has seen a noticeable increase. Brokers estimate that 20% to 25% of NRI buyers now prefer to purchase luxury villas, up from just 10% a few years ago. These villas are typically priced upwards of ₹10 crore and range from 3,000 to 4,000 square feet.
Many of these buyers are returning to India and looking for a luxurious, long-term home, often as part of their post-retirement plans. “The preference for villas has grown due to their appeal as lifestyle products. Buyers not only own the property but also the land it sits on, making them an attractive investment option,” explained Rao.
Real estate experts also point out that NRIs from the hospitality and banking, financial services, and insurance (BFSI) sectors are particularly inclined toward investing in luxury villas in North Bengaluru. On the other hand, IT professionals, many of whom are already based in Bengaluru, often prefer properties in the eastern part of the city due to their proximity to the IT corridor.
The ongoing development of infrastructure, including projects like the suburban rail, Bengaluru Satellite Town Ring Road, and the upcoming Peripheral Ring Road, is expected to further enhance North Bengaluru’s appeal. These improvements will continue to draw U.S.-based NRIs looking for lucrative real estate investments.
As more multinational corporations and major tech firms establish campuses in North Bengaluru, the region is well-positioned to maintain its strong investment appeal, with NRIs continuing to invest in both gated communities and high-end villas.