NRIs who wish to accumulate wealth and obtain a sustainable legacy can invest in luxury real estate in India. This can be an attractive investment tool as real estate can act as a tangible asset that can be carried down across generations and also provides monetary growth. India offers various unique opportunities for high yields due to its booming economy, solid infrastructure and rising demand for premium properties.
This blog post will take you through the advantages of investing in luxury real estate and how it can act as a legacy investment option, along with other key considerations for NRIs.
The Appeal of Luxury Real Estate as a Legacy Asset
Given below is a glimpse of why luxury real estate carries immense significance for NRIs:
- Family Legacy: Acquiring a luxury apartment enables NRIs to develop a legacy that can be carried down to future generations, thus strengthening family bonds and fostering a long-lasting connection to India.
- Scarce Supply of Elite Properties: Premium real estate is placed in areas that have limited supply, like prime modern neighbourhoods or scenic places. This makes it a limited and precious commodity that can reap brilliant capital growth.
- Recognition and Social Status: Purchasing a luxurious property in a reputed address can act as a status symbol, showcasing personal fame and boosting the social positioning of the owner in India and also in their NRI community abroad.
- Safe and Convenient Living for Aging Parents: NRIs invest in premium properties for the safety and comfort of their ageing parents, offering them a high standard of living in India.
- Diversification into a Safe Asset Class: Premium properties provide diversification benefits that go beyond traditional asset classes such as stocks, mutual funds or bonds. Real estate offers security and elite properties, mainly, are safe assets that are less volatile when compared to other asset classes and sectors.
- Easy Repatriation Procedures: Investing in premium real estate can be a great tool to facilitate the repatriation of rental returns and sales, according to the guidelines. This assures that NRIs can handle their investments effectively and align well with their financial planning and objectives.
- Advanced Amenities and Lifestyle: In India, luxury projects tend to be equipped with top-notch amenities like enhanced safety systems, pools and landscaped parks. These not only boost the overall living experience but also lure wealthy tenants, assuring constant rental yields and upkeep of the property’s reputation.
Read Also: How NRI Investors Can Capitalise on India’s Growing Luxury Real Estate Demand
Understanding Estate Planning & Legal Considerations for NRIs
Estate planning is an important process for NRIs to ensure that their assets are allocated as per their preferences and to alleviate potential tax and legal concerns through jurisdictions. Following are some of the key considerations for NRIs who wish to conduct estate planning:
- Using Trusts: Creating trusts can provide benefits like safeguarding assets, tax efficiency and enhanced control of assets over time. Trusts can be mostly advantageous in handling assets throughout various jurisdictions.
- Regularly Checking and Updating Plans: Life circumstances like changes in marital status, childbirth or huge monetary changes can have an impact on real estate plans. Checking and updating wills regularly can go a long way in ensuring that they show present wishes and adhere to any modifications in law.
- Inheritance Tax Considerations: Though India does not have any inheritance tax, NRIs need to be informed about inheritance taxes or potential estate in their home country. Engaging with tax professionals can assist them in planning things properly to reduce these obligations.
- Digital Platforms: Using technology for creating real estate planning tools can help NRIs in drafting wills, handling asset nominations and tracking asset allocations. These tools can ease the procedure and help NRIs create an accessible and systematic estate plan.
High-Growth Locations for Legacy Investments
Investing in high-growth locations can improve legacy portfolios for NRIs. They can consider the following main areas:
- Vijayawada, Andhra Pradesh: Known for being one of the fastest developing cities, Vijayawada’s GDP is expected to reach $17 billion by 2025. Its positioning of being regarded as an educational hub combined with its quick urbanisation showcases profitable real estate opportunities.
- GIFT City, Gujarat: GIFT City is considered to be India’s first functional greenfield smart city and global financial services hub, luring many banks and fintech organisations. Its strategic placement and continual developing infrastructure make it a promising investment spot.
- New Gurgaon, Haryana: Located across the Dwarka-Gurgaon Expressway, New Gurgaon offers brilliant connectivity and many planned projects, consisting of residential, commercial and industrial developments, hence boosting its overall investment appeal.
- DLF’s Ultra-Luxury Project Near New Delhi: DLF’s $4 billion development project provides 420 ultra-premium units priced at $8 million each, comprising amenities such as cinemas and cascading lakes. As of January 2025, around 173 units are sold, underscoring solid demand in the luxury domain.
For NRIs who wish to create a legacy via real estate, these high-growth locations provide immense scope, influenced by strategic advancements and solid demand.
Read Also: Evaluating the Long-term Appreciation of Luxury Properties in Indian Metro Cities
Investing in High-Value Real Estate for Future Generations
Investing in premium real estate can be a testament to a sustainable legacy for coming generations, providing financial prosperity and an emotional connection to family heritage. To enhance the impact of these investments, NRIs can consider these strategies:
- Real Estate Investment Trusts (REITS): REITS provide a lucrative way to invest in real estate without owning the property directly, offering liquidity and exposure to various property types.
- Consult Professionals: It is recommended that NRIs engage with financial consultants, legal experts and real estate professionals to assess complex investment landscapes into simple processes and facilitate rational alignment with long-term objectives.
- Private Equity Real Estate Funds: These funds enable investors to engage in large real estate projects, diversifying their investment portfolios and sharing risks. Investments can consist of direct property ownership to pooled funds, aligning to a broad range of investment choices.
In this way, NRIs can build a lasting legacy that can bear fruitful results for coming generations financially and culturally.
Conclusion
In India, luxury real estate is a robust legacy tool for NRIs, providing long-term prospects and a lucrative asset for coming generations. By thoroughly evaluating high-demand areas and market conditions, NRIs can facilitate investment growth and offer meaningful inheritance.
This blend of monetary stability and lasting legacy makes real estate a smart investment choice for those who wish to safeguard their family’s future in India. As an NRI, if you are looking for a luxury property, contact us at Rustomjee and invest in our premium residential properties to fetch maximum returns.
FAQs
- How is the demand for luxury real estate in India?
The demand for Indian luxury real estate is steadily going up, backed by a rising affluent class, prompt urbanisation and a growing inclination towards premium living. Main cities like Mumbai, Bangalore and Delhi continue to witness a solid interest from domestic and NRIs who seek elite properties.
- Is investing in luxury real estate in India the right choice for NRIs long-term?
Yes. Investing in luxury real estate in India can be the correct choice for NRIs in the long term because of high-yield potential, capital growth and a tangible legacy. As the Indian economy grows, premium properties can offer a safe future and monetary stability for future generations.
- How can NRIs benefit from investing in luxury real estate in India while residing abroad?
NRIs can benefit from investing in luxury real estate in India while residing abroad by generating a steady rental income source, capital growth and developing a long-term asset base. Also, they can avail of property management services and handle their investments remotely, assuring continual returns while residing abroad.
