Buying Property in India: A Good Time for Overseas Indians?

Indian residential property price gains are showing signs of slowing down after three years of consistent growth. This shift presents a potential opportunity for Indian expats in the UAE and the Gulf to consider property investments in India. While major cities experienced significant value increases in the past, with some reporting 10-30% growth in early 2025, the market is now cooling.

Demand from resident Indian buyers appears to be softening, and unsold luxury homes in Mumbai are piling up. Across the top seven Indian cities, home sales in Q1 2025 were significantly lower than the previous year, indicating a slower absorption rate influenced by higher prices and global uncertainties. Average home prices in Mumbai reached a seven-year high, further impacting affordability.

Property price growth in major cities has cooled to single-digit levels, with Bengaluru and Hyderabad still showing modest gains. However, several cities face a shortage of entry-level inventory, particularly in the affordable and mid-segments. This situation creates a strategic window for NRIs in the UAE and Gulf to consider property investments.

Furthermore, interest rate cuts in India, reflected in reduced mortgage rates, could make property purchases more attractive. Luxury and ultra-luxury homes continue to dominate the market, driven by steady demand, with many NRIs focusing on these segments.