‘Resist The Temptation’: NRI Explains Risks Of Investing In Indian Real Estate

Last Updated:August 16, 2025, 11:39 IST

A Reddit post has warned NRIs that buying property in India is more of a headache than a homecoming dream.

A viral Reddit post has sparked a heated debate among Non-Resident Indians (NRIs), prompting questions about whether buying property back home is truly worthwhile. The user, an NRI sharing personal experience, warned fellow expatriates to “resist the temptation” of investing in real estate in India, whether for retirement, investment, or as a safety plan. According to the post, owning property from abroad is nothing short of a “nightmare.”

The user explained that the challenges begin the moment builders discover the buyer is an NRI, often charging a “premium” for under-construction projects. Many NRIs also dream of a retirement home in India, but the post argued that people usually end up living overseas much longer than they expect. By the time they return, the property may already feel outdated.

Even for those with immediate plans to move back, the Redditor advised relocating first, renting for a couple of years, and only then buying. Localities change rapidly, they noted, and what looked familiar a few years ago may be unrecognisable by the time you settle.

Investment Risks

The post was blunt about real estate as an investment. “For every success story, there will be 10 not-so-successful or even horror stories that you don’t hear about,” it read.

Residential flats were described as poor investments, and even buying land was said to be risky unless trusted family members were present to prevent encroachments. The biggest disadvantage, according to the user, is that NRIs are not physically present to manage their assets.

In addition, many property deals still involve black money unless the purchase is made from a top-tier builder, which the user described as “also a major pain” for expatriates.

Check the post here:

When It Makes Sense

The only scenario where buying might be worthwhile, the post suggested, is for “immediate own use.” For example, upgrading a family home for parents or siblings could make sense, provided their inputs are taken.

The user also highlighted succession issues, warning that children born and raised abroad are unlikely to have any interest in maintaining property in India. For retirees, the advice was simple: buy a smaller 2BHK later in life rather than spending now on a “grand villa/apt to show off that you’re a successful NRI.”

Stories from NRIs

The discussion thread drew a flood of personal experiences. A commenter said selling property as an NRI was a “nightmare,” pointing to TDS rules, mortgage-related cash requirements, and the hassle of sending money abroad through banks like SBI.

Another shared how their decade-old apartment became a constant headache, from struggling to find tenants to paying repeated estate agent fees, dealing with new police verification rules, and competing against newer projects. In the end, they sold at a loss.

Others shared horror stories of squatters, corruption, unreliable contractors, and endless bureaucratic delays. A user summed it up in plain words: “Don’t buy. It’s an outdated investment that will take up way too much of your time for what you get out of it.”

The Bigger Picture

Despite these concerns, India’s luxury real estate market continues to grow. Strong demand from wealthy individuals, NRIs, and domestic buyers has fuelled investment in premium projects across major cities, as per Business Today.

For many, high-end properties are seen as a safe way to preserve wealth, much like in global investment hubs.

Reports suggest that NRIs account for 15 to 25 per cent of investments in top projects in places like Gurugram, Delhi, Mumbai, and Bengaluru. These cities are attractive because of their modern infrastructure, booming economies, and upscale housing options.

NRIs from the US, UK, UAE, Canada, and Singapore have shown significant interest, driven by their financial capacity and desire to own a slice of India’s growing property market, the publication adds.

But not all projects live up to expectations. For several NRIs who invested in the Ozone Urbana township in Devanahalli near Bengaluru, the dream turned into a drawn-out legal and emotional ordeal. Their experience highlights the risks hidden beneath the promise of India’s booming real estate sector.

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Delhi, India, India

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