NRI in Dubai Warns Against Investing in Indian Real Estate Amid Rupee’s Decline

The rupee hit a record low on 5 May 2026, amid the ongoing tensions between the United States and Iran. This decline has significant implications for Non-Resident Indians (NRIs) considering investments in Indian real estate. A user on Reddit, who is an NRI based in Dubai, has shared his personal experience of owning properties in India and why he advises against further investments.

The post is shared by an NRI who owns properties in Hyderabad and Bangalore. He explained that although investing in Indian real estate might seem like a smart move, the hidden costs and logistical issues make it a less attractive option. “I'm an NRI in Dubai. I own 2 properties in India. Won't be buying a third. Here's why,” the user wrote.

From low net rental yields of just 2–3% to the administrative hassles of managing tenant TDS and other repatriation paperwork, the NRI detailed how his investment has been impacted by the ongoing currency fluctuations. He added, “Bought one in Hyderabad. One in Bangalore. Both tenanted. Both ‘doing well on paper.’ Here's the honest math nobody told me before I bought. The yield is embarrassing. Net rental yield after maintenance, society charges, and property tax is 2 to 3%. My UAE savings account pays 4%. Cool.”

The user also noted that tenants often do not prefer NRI landlords, making it difficult to find reliable tenants. He mentioned, “The currency is quietly killing you. USD/INR was 83 two years ago. It's 95 today. That's 14% gone before you've even done anything. The exit is a nightmare.”

Furthermore, he emphasized the illiquidity, the headache of managing properties from abroad, the currency drag, and the difficulty of exiting investments. “Property won on paper. But for the illiquidity, the headache, the currency drag, and the exit pain? Just not worth it for me,” he concluded.

Reacting to the post, many netizens agreed with the NRI’s concerns. One commenter stated, “NRIs buying apartments or end-use properties in India as an investment is just plain stupid. If you hold your money in dollars or any stable currency, the returns will beat most of your investment in properties. And as you mentioned, selling and withdrawing your money is nothing short of a nightmare. The buyer has to deduct 20% TDS, which you then refund after filing returns and then file forms to transfer money to the NRE account. Any mistake and you can get a tax notice.”

Another user added, “Thank you so much for making this post. This will discourage NRI buyers from investing in Indian real estate. By this, the cost might come down so we can afford a home.”

A different commenter suggested, “I suggest only one property in India for only NRIs in Dubai or the US because neither of them gives permanent residencies or citizenship. It does not make sense for the NRIs in the UK or Canada, where they can get citizenship and own homes.”

While the rupee’s decline has made international investments more challenging, the insights shared by this NRI provide valuable perspectives for those considering real estate investments in India. It highlights the need for thorough research and careful consideration of the associated risks and costs.