Why Mumbai and Pune Continue to Attract NRI Real Estate Investments

I. Introduction: The NRI Real Estate Revival

Over the last few years, NRI real estate investment in India has entered a powerful new phase. Rising remittances, stronger rupee dynamics, and a renewed emotional connection with India have reshaped buying patterns across the diaspora.
For global Indians, property ownership back home serves a dual purpose — it’s both an emotional anchor and a financially strategic asset. Homes in India are no longer just inherited or nostalgic purchases; they’re calculated investments with high return potential.
And within India’s vast geography, two cities dominate the NRI radar: Mumbai and Pune.
One offers stature, liquidity, and brand permanence.
The other offers value, scalability, and long-term growth.
Together, they form the perennial powerhouses of NRI property investment in India.

II. Recent Trends & Data Snapshot

• According to Knight Frank, NRI real estate investment in India surged nearly 35% in FY24, with total inflows projected to reach USD 14 billion by 2025.
• Reports by CIRIL predict India’s property market could scale multi-trillion-dollar valuations by 2047, driven by infrastructure, affordability, and sustained diaspora participation.
• In The Economic Times city rankings, Mumbai continues to be India’s real estate capital, while Pune has emerged as one of the top three cities for NRI property buyers.
• Maharashtra’s property registration data (2025) shows steady traction despite ready reckoner rate hikes — signaling consistent demand resilience.

Simply put, the NRI investment pipeline into India is stronger than it has been in over a decade.

III. Why Mumbai Still Holds the NRI Throne

For many NRIs, Mumbai isn’t just a city — it’s a global brand. It represents the epicenter of India’s finance, culture, and luxury housing ecosystem.

• Irreplaceable Economic Gravity
  Mumbai remains India’s most liquid real estate market, attracting steady demand from both domestic HNIs and the global Indian diaspora.
• Premium Inventory Spectrum
  Ultra-luxury projects in South Mumbai, BKC, Worli, and Bandra continue to attract NRIs seeking trophy homes and stable assets. Developers like K Raheja Corp Homes, Lodha, Oberoi, and Godrej dominate this segment with design-led, amenity-rich developments.
• High Liquidity and Resale Ease
  Mumbai’s mature secondary market ensures faster resale cycles — a critical factor for NRIs who may want to exit or rotate capital later.
• Strong Rental Ecosystem
  Rental demand remains consistently high, fueled by corporate executives, global firms, and expatriates based in Mumbai.
• Infrastructure Renaissance
  From the Mumbai Coastal Road and Trans Harbour Link to the Metro network and Eastern Waterfront redevelopment, the city is amid its most significant infrastructure transformation in decades
  Each project enhances Mumbai’s livability and investment-grade potential.
• Stability Across Market Cycles
  Even in downturns, Mumbai’s premium real estate has historically shown price resilience and quick recovery, protecting long-term NRI capital.

IV. Pune’s Rising Appeal to NRIs

If Mumbai offers legacy, Pune offers opportunity. It’s the city where quality of life meets capital efficiency — making it the go-to destination for NRIs seeking growth-driven, sustainable investments.

• Better Value per Rupee
  While Mumbai’s entry prices remain steep, Pune properties offer luxury homes and gated communities at significantly lower entry points — without compromising on amenities.
• Employment and Rental Drivers
  Pune’s IT and education ecosystem fuels strong housing demand. Areas like Mahalunge, Hinjewadi, Baner, Balewadi, and Kharadi have become prime rental zones, ensuring reliable cash flow for NRI landlords.
• Infrastructure Acceleration
  Massive public infrastructure upgrades — including the Pune Metro, ring roads, new expressways, and improved Mumbai–Pune connectivity — are lifting the city’s long-term real estate value.
• Lifestyle & Livability Advantage
  Cleaner air, lower congestion, and a greener cityscape make Pune an appealing “return home” destination for many NRIs, especially families considering future relocation.

V. Mumbai vs Pune: What NRIs Weigh

High entry barrierExcellent — deep secondary marketGood, improving with developer presence

For NRIs, the ideal approach often combines both — Mumbai for stability, Pune for acceleration.

VI. The Role of Developer & Brand Confidence

For overseas buyers, the developer’s reputation is often the deciding factor. Legacy developers signal trust, transparency, and execution reliability.

Brands That Command NRI Confidence

• K Raheja Corp Homes – iconic for design precision and timely delivery
• Lodha, Oberoi, Godrej, Kolte-Patil, and Tribeca – consistent performers with dedicated NRI sales channels

Developer Innovation for NRIs

• Virtual walkthroughs, overseas roadshows, and global experience centers
• Dedicated NRI sales desks simplifying documentation and financing
• End-to-end services including property management and rental assistance

Brand trust reduces perceived risk — a crucial differentiator in NRI property investment in India.

VII. Regulatory, Financial & Repatriation Factors

• FEMA & RBI Rules
  NRIs can buy residential and commercial property in India, but not agricultural land, farmhouses, or plantations.
• Payment Channels
  Transactions must be routed through NRE or NRO accounts, ensuring regulatory compliance and easy traceability.
• Taxation
  • Rental income is taxed under Section 195 (TDS deduction).
  • Capital gains apply on sale; long-term and short-term slabs differ.
  • DTAA (Double Taxation Avoidance Agreements) with multiple countries provide relief.
• Repatriation
  NRIs can repatriate sale proceeds from up to two residential properties, subject to RBI caps and valid documentation.
• Legal Due Diligence
  It’s critical to have a registered Power of Attorney (PoA) and engage local legal advisors to verify title, encumbrance, and RERA compliance before purchase.

VIII. Risks & Mitigants

In short, trusted brands, ready projects, and local guidance minimize exposure while protecting returns.