NRI Demand for Indian Real Estate Surges: Younger Buyers and Long-Term Investments

NRI demand for Indian residential real estate is undergoing a major transformation, marking one of the strongest cycles seen in years. Aakash Ohri, Joint Managing Director and Chief Business Officer at DLF Homes, shares insights into this evolving trend.

Speaking to Kshitij Anand of ETMarkets, Ohri explains that global Indians are no longer viewing property purchases as short-term or speculative bets. Instead, they are making long-term, lifestyle-driven investments backed by rising incomes, deeper emotional connections, and renewed confidence in India’s growth story.

From a sharp surge in NRI sales across DLF projects to a noticeable drop in the average age of first-time buyers, Ohri highlights how younger, globally mobile families are increasingly prioritising premium and ultra-luxury homes in India, signalling a structural shift in global buyer behaviour.

Global investors increasingly see India as a structural growth story, driven by large domestic demand, resilient macro fundamentals, and improving institutional frameworks. Compared with many emerging markets, India offers scale, demographic tailwinds, and city-level pockets of world-class real estate demand. That said, investors are discerning: they favour clear governance, project delivery, and returns visibility. Organised, long-standing developers who can demonstrate delivery, compliance, and asset management, not just land-speculation plays, are winning more global capital.

NRI interest has become both broader and deeper. At DLF, we have seen NRI sales accelerate sharply over the past three financial years, from about USD 240 million in FY23 to USD 408 million in FY24, and further to approximately USD 421 million in FY25, signalling not only growing global confidence but also a shift toward long-term ownership. This momentum has continued into FY26, where NRI buyers accounted for over 27% of sales during the launch of DLF Privana North.

Demand has been equally strong beyond NCR; in Mumbai, our debut project, The WestPark in Andheri West, saw around 20% of total buyers coming from the global NRI community, largely Mumbai-origin families purchasing premium homes. Motivations today span self-use and lifestyle upgrades, retirement or second-home planning, and investment for rental yield and appreciation, but what defines the current cycle is that purchases are no longer speculative. NRIs are choosing high-quality developments for long-term residence and generational ownership.

Since the pandemic, we have observed the average age of first-time homebuyers drop by nearly a decade, with many now in their early 30s, while luxury buyers are increasingly in their 40s and ultra-luxury buyers often start from the same age bracket upwards, backed by dual-income households, high disposable incomes, and wealth creation from entrepreneurial pursuits.

Gurgaon remains the most preferred destination for NRIs, especially for luxury and ultra-luxury developments, driven by strong capital appreciation, rental yield stability, world-class social infrastructure, and a large community of returning Indians. Over the past few quarters, however, we have seen Gurgaon and Mumbai emerge very rapidly as a top-of-mind choice, particularly among NRIs originally from the city, who are now prioritising a ‘home anchor’ back in India.

Delhi and NCR continue to perform extremely well among global Indian buyers, partly due to family bases and emotional ties, but equally because of the consistency of lifestyle and asset quality that integrated luxury townships offer. We are also seeing increasing interest in Goa, Kochi, and Panchkula, where NRIs are looking for lifestyle-focused homes that can double as long-stay holiday residences or future retirement addresses.

Rental yield continues to be the most compelling driver of NRI demand, particularly in luxury gated communities where rental premiums and capital appreciation have been exceptionally strong. Post-pandemic, there has been a sharp rise in preference for high-rise luxury condominiums that offer safety, privacy, lifestyle amenities, and seamless daily conveniences, qualities that translate into consistently high occupancy and robust rental returns.

The performance of developments like DLF The WestPark and Privana North, each selling out within days, has reinforced NRIs’ confidence in real estate as a reliable income-generating asset. Alongside this, retirement and second-home planning is steadily rising as NRIs look for secure, fully serviced homes for extended stays in India. A parallel emotional shift, the desire to reconnect with roots, build a family base, and spend more time in India, is also strengthening demand.

Yes, we are clearly seeing younger NRIs buying much earlier in their careers compared to previous generations. Since the pandemic, the average age of a first-time homebuyer has reduced by almost a decade, with many now purchasing homes in their early 30s rather than waiting until their mid-40s or later. This shift is driven by higher disposable incomes, dual-income households, and wealth created through global careers and entrepreneurial ventures.

The luxury segment, in particular, is benefiting from this young, financially confident demographic that is prioritising lifestyle, asset creation, and long-term India linkages much earlier in life. Many of these buyers are purchasing not only for investment but also with a vision of establishing a family base in India. Existing NRI homeowners, meanwhile, are upgrading to more premium or ultra-luxury properties as capital previously allocated to other asset classes is now actively moving into real estate. This younger, future-focused homebuyer profile is one of the biggest structural shifts shaping NRI demand today.