Will the $100,000 H-1B Fee Drive NRIs to Invest in Bengaluru Real Estate? Experts Weigh In
The new $100,000 H-1B visa fee is causing many professionals to reconsider their stay in the US, potentially leading to increased investment in Bengaluru's real estate market. Experts discuss the potential impacts on both rental and purchase trends.
H1b VisaReal EstateBengaluruNrisInvestmentReal Estate NewsSep 24, 2025
However, she has a home in Bengaluru that she purchased a couple of years ago, giving her family a place to fall back on if they have to move back. She explained that if costs rise and opportunities shrink, many will choose to return permanently. For those who haven’t yet invested in India, she believes the policy shift could push them to either rent before buying their own home when they move back.
The $100,000 H-1B fee is sparking conversations in Bengaluru’s real estate market. Experts say many professionals are considering returning to India and may invest in property if they don’t already own one. Most returnees are expected to rent for a year initially while sorting out finances and schools for their children, potentially driving rental rates up by 5–10% in certain areas.
Announced by US President Donald Trump on September 21, the move raises the cost of sending Indian tech workers abroad. While some professionals may stay in India, boosting local housing demand, experts warn that overall demand for high-end housing linked to dollar salaries could remain muted. “Flat prices in Bengaluru have historically tracked IT salary growth. If job opportunities abroad shrink, luxury housing could see slower absorption,” said a Bengaluru-based broker.
A few NRIs returning from the US are exploring Bengaluru properties with budgets of ₹2–3 crore. According to local brokers in Bengaluru, returning NRIs are weighing options across both the city’s outskirts and established neighbourhoods. “One of the families I spoke to, who are already on H1B visa, are planning to move back from the US in March next year. They are looking at properties in the outskirts with a budget of ₹2–3 crore, viewing it both as an investment and a home to live in,” said Kiran Kumar, vice president at Hanu Reddy Realty.
Anagha (name changed), another NRI, said many returnees are already investing in Indian housing. “A lot of people have gone back, and this $100,000 fee will push even more to make decisions. For most, buying a home will be their path. If they don’t find the right property, they may rent for a while, but the money will eventually be parked in buying an apartment,” she said.
Another US-based NRI investor shared that their family is looking for plotted development as part of their long-term plan back in India. “We see this as our second home, where we eventually want to retire. When we move back to India, we want a particular lifestyle, less crowded surroundings, access to good schools, better facilities for children, and spaces for sports and recreation,” the investor said.
For Anagha, the pull of Bengaluru’s property market is both emotional and practical. Outskirts of Bengaluru make sense, she said. “They’re affordable, appreciating, and still close enough to the IT corridors where the demand will never fade.”
Several people we know have been in the US for years but still haven’t secured a green card. When they eventually return, either because they lose their job or for a more secure future, they may start by renting before buying a home, said Vivek Garg, founding director of NVT Quality Lifestyle and governing board member of Credai Bengaluru. “Many of them also have children, so schools and colleges become a big factor before they decide to settle down. But those with sufficient savings will directly look at premium 4BHKs or villas in the ₹1.5–5 crore range,” he said.
Garg said that nearly 30% of such NRIs, still waiting for their green cards, already have residential investments in major Indian cities like Bengaluru, Pune, and Mumbai. “They prefer gated communities that offer a lifestyle similar to what they’re used to in the US. Most of them opt for EMIs since they also have other investments, making it difficult to park the entire amount into real estate at one go,” he explained.
Real estate experts say that while some buyers may remain cautious, rental demand could see an increase. “Many returnees will first rent for a year before committing to buy, especially as they sort out finances and schools for children. This could lift rentals by 5–10% in some areas,” said Manjesh Rao, chief broking officer at BlueBroker.
Commercial real estate could also benefit as some returnees look to start their own ventures in Bengaluru. “People with international exposure may see opportunities here and will definitely look at premium office space. IT corridors will gain the most, as professionals returning from abroad tend to settle close to where they work,” Rao said.
Frequently Asked Questions
What is the new H-1B visa fee?
The new H-1B visa fee is $100,000, announced by US President Donald Trump on September 21.
How is the H-1B fee affecting NRIs in the US?
The new fee is causing many NRIs to reconsider their stay in the US, potentially leading to an increase in returns to India.
What are NRIs expected to do when they return to India?
Many returning NRIs are expected to rent initially while they sort out finances and school options for their children, potentially driving rental rates up by 5–10% in certain areas.
What type of properties are NRIs looking for in Bengaluru?
NRIs are exploring properties in both the city’s outskirts and established neighborhoods, with budgets ranging from ₹2–3 crore. They prefer gated communities and premium 4BHKs or villas.
How might commercial real estate in Bengaluru benefit from this trend?
Commercial real estate could benefit as some returnees look to start their own ventures, particularly in IT corridors where they can settle close to work.
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