NRIs Increasingly Invest in Indian Commercial Real Estate for High Returns
A recent survey by SBNRI reveals that 52% of NRIs are now prioritizing Indian commercial real estate (CRE) for its high returns and portfolio diversification, marking a significant shift from traditional residential investments.
Commercial Real EstateNri InvestmentsReal Estate MarketCreIndian Real EstateReal EstateJul 25, 2025
The survey reveals that 52% of NRIs now consider Indian CRE a key part of their investment strategy, marking a shift from traditional preferences like residential properties.
Post-COVID Rebound Fuels NRI Interest
The Indian real estate sector, which saw a slowdown during the pandemic, has bounced back with promising prospects. With a projected CAGR of 9.2% between 2023 and 2028, the market has attracted global attention. For NRIs, this resurgence, coupled with streamlined processes and enhanced transparency, is opening new doors for investment back home.
CRE Outshines Residential Real Estate
Historically, residential property dominated NRI real estate investments. However, fractional ownership models are changing the game. Instead of shelling out Rs 5-10 crore for a commercial unit, investors can now participate in high-grade commercial properties with as little as Rs 25 lakh, making CRE more accessible than ever before.
Key motivations for NRIs choosing CRE over residential include:
Better returns: 34% cited this as their top reason
Convenience in investing: 48% appreciated the seamless process and property discovery
Hassle-free management: 18% valued services like tenant placement and property upkeep
Country-Wise Trends: Singapore and UK Lead the Pack
The survey highlighted regional variations in NRI investment preferences:
Singapore NRIs (9%) and UK-based NRIs (8%) are leading in CRE investments, surpassing their residential investments.
UAE NRIs showed a different trend: 9% preferred residential, while 7% chose CRE.
US and Australia showed growing interest in CRE with 4% of NRIs from both countries investing in commercial properties.
Canada remains more conservative, with only 3% of NRIs showing interest in Indian real estate.
Technology and Transparency Fuel Growth
Barriers that once held back NRI participation—such as lack of access, regulatory complexity, and opaque processes—are being overcome through digitization and regulatory reforms. Platforms like SBNRI are playing a pivotal role in standardizing investment processes and offering end-to-end solutions, making it easier for NRIs to invest remotely and securely.
CRE as the Future of NRI Real Estate Investment
According to the report, 18% of NRIs are actively looking to increase their CRE exposure, compared to just 9% focusing on residential. With benefits such as capital appreciation, passive rental income, inflation hedging, and portfolio diversification, CRE is well-positioned to remain a dominant asset class for global Indian investors. As SBNRI’s findings suggest, the Indian commercial real estate market is no longer just a local story—it’s a global opportunity increasingly embraced by the diaspora.
Frequently Asked Questions
What is the main reason NRIs are investing in Indian CRE?
The main reason NRIs are investing in Indian CRE is the potential for better returns, with 34% of NRIs citing this as their top reason.
How has the Indian real estate market changed post-COVID?
The Indian real estate market has seen a post-COVID rebound with a projected CAGR of 9.2% between 2023 and 2028, attracting global attention and making it more appealing for NRIs.
What are the key benefits of investing in CRE over residential properties?
Key benefits of investing in CRE include better returns, convenience in investing, and hassle-free management with services like tenant placement and property upkeep.
Which countries are leading in NRI CRE investments?
Singapore NRIs (9%) and UK-based NRIs (8%) are leading in CRE investments, surpassing their residential investments.
How is technology improving NRI participation in the CRE market?
Technology is overcoming barriers such as lack of access and regulatory complexity by providing digitized platforms and end-to-end solutions, making it easier for NRIs to invest remotely and securely.
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