NRI Real Estate Investment Surges to $80 Billion: Tier-2 Cities Like Mysuru Emerge as Top Destinations

As NRI real estate investment has grown to $80 billion since 2010, as per Credai-Colliers, the demand pattern is shifting beyond the traditional metros to tier-2 and emerging cities. Many NRIs are now looking at cities like Mysuru and similar urban centers for their second or future homes. The global economic and geopolitical volatility is renewing the appeal of establishing a secure base in India.

Developers and real estate experts point to several factors driving this trend. Firstly, the value dynamics in tier-2 cities are significantly more attractive compared to the saturated and expensive metros. Cities like Mysuru offer more affordable entry price points, which is a significant consideration for NRIs looking to invest in real estate.

Additionally, these emerging markets have a higher perceived appreciation potential. As these cities continue to develop and attract more businesses and residents, the value of properties is expected to rise, making them a lucrative long-term investment. The superior rental yields in tier-2 cities are another compelling factor. NRIs can earn higher returns on their investments through rental income, which is particularly appealing in a low-interest-rate environment.

Rastogi, a prominent real estate developer, noted that the combination of these factors is making emerging tier-2 and tier-3 markets increasingly attractive for overseas buyers. The trend is likely to continue as more NRIs seek to diversify their investment portfolios and secure a foothold in India's growing economy.

The shift towards tier-2 cities is not just about the financial benefits. Many NRIs are also drawn to the quality of life these cities offer. Mysuru, for example, is known for its rich cultural heritage, pleasant climate, and well-planned infrastructure. The city's growing business ecosystem and educational institutions make it an ideal choice for NRIs looking to settle down or invest in real estate.

In conclusion, the surge in NRI real estate investment to $80 billion and the growing interest in tier-2 cities like Mysuru highlight a significant shift in the real estate market. This trend is driven by a combination of value, appreciation potential, and quality of life, making these cities compelling options for overseas buyers.