Trump's New Visa Policy: Implications for India's Real Estate Market
US President Donald Trump's introduction of a $100,000 annual fee on H-1B visa petitions from September 2025 could significantly impact India's real estate market, particularly in tech hubs like Bengaluru and Hyderabad.
H1b VisaReal Estate MarketIndiaTech HubsProperty InvestmentReal EstateSep 20, 2025
With over 71% of H-1B approvals in FY2024 going to Indian nationals, experts predict that the new fee will discourage onsite deployments and reduce overseas hiring. This could have a major impact on remittance-backed home buying and long-term housing decisions among tech professionals. Real estate experts warn that cities like Bengaluru, Hyderabad, Pune, and Gurugram could see a downturn due to this policy change.
Experts have identified three major risks to the real estate market: a decline in premium housing demand, delayed purchase decisions due to postponed US relocations, and slower absorption of mid-to-high-end projects aimed at tech buyers. A Delhi NCR-based real estate consultant said the sudden cost spike is likely to dampen sentiment among overseas-bound families who were relying on US assignments for property investments back home.
Pareekh Jain, CEO of Pareekh Consulting, said remittances are a major driver of housing demand in India. He predicted that while primary housing demand may rise as people return from the US or move to metros, investment demand in real estate will weaken due to lower remittances and job insecurity. Vishal Raheja, Founder & MD of InvestoXpert, also said the proposed H-1B visa fee could impact Indian housing demand.
Despite challenges in the residential sector, there could be a silver lining for commercial real estate. The growth of Global Capability Centres (GCCs) may accelerate as American companies look to restructure their staffing strategies. Indian cities could see an increase in office space leasing and infrastructure development due to this shift. According to CBRE data, GCCs now account for 35-40% of office space absorption in metros like Bengaluru, Hyderabad, and Pune.
As developers, buyers, and investors adjust to these changes, India's real estate market is likely to witness a shift toward mid-segment housing and rental ecosystems. Akash Puri from India Sotheby's International Realty said higher H-1B costs could push top talent to explore global cities for luxury real estate. He added that this would create fresh demand in markets offering stability and lifestyle.
Frequently Asked Questions
What is the new H-1B visa policy introduced by President Trump?
The new policy imposes a $100,000 annual fee on most H-1B visa petitions from September 21, 2025.
How will this policy affect India's real estate market?
It could lead to a decline in premium housing demand, delayed purchase decisions, and slower absorption of mid-to-high-end projects aimed at tech buyers.
Which Indian cities are most likely to be affected?
Cities like Bengaluru, Hyderabad, Pune, and Gurugram are expected to see the most significant impact.
Will there be any positive effects on the commercial real estate market?
Yes, the growth of Global Capability Centres (GCCs) may accelerate, leading to increased office space leasing and infrastructure development.
What is the expected shift in global investment patterns?
Developers, buyers, and investors are likely to shift toward mid-segment housing and rental ecosystems, and top talent may explore global cities for luxury real estate.
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