A Reddit user claimed that on paper, Indian real estate looks like a golden investment for NRIs but the hidden costs and logistical nightmares often tell a completely different story. A Dubai-based NRI, who owns properties in Hyderabad and Bangalore, recently shared a breakdown of why they will never buy a third property in India. From a disappointing 2-3% net rental yield and punishing currency fluctuations to the administrative headache of handling tenant TDS and repatriation forms, the homeowner says the hurdles are significant.
“I’m an NRI in Dubai. I own 2 properties in India. Won’t be buying a third. Here’s why,” the individual wrote. The Reddit user added, “Bought one in Hyderabad. One in Bangalore. Both tenanted. Both ‘doing well on paper.’ Here’s the honest math nobody told me before I bought. The yield is embarrassing. Net rental yield after maintenance, society charges and property tax is 2 to 3%. My UAE savings account pays 4%. Cool.”
The individual further claimed that the tenants hate NRI landlords and alleged that it is difficult to get people to rent the houses due to the “complicated” tax process.
In the following lines, the homeowner said, “The currency is quietly killing you. USD/INR was 83 two years ago. It’s 95 today. That’s 14% gone before you’ve even done anything. The exit is a nightmare.”
The Reddit user continued, “Property won on paper. But for the illiquidity, the headache, the currency drag and the exit pain? Just not worth it for me,” adding, “Property won on paper. But for the illiquidity, the headache, the currency drag and the exit pain? Just not worth it for me.”
How did social media react?
An individual commented, “NRIs buying apartments and or end-use properties in India as an investment is just plain stupid. If you hold your money in dollars or any of the stable currencies, the returns will beat most of your investment in properties. And as you mentioned, selling and withdrawing your money is nothing short of a nightmare. The buyer has to deduct 20% TDS, which you then refund after filing returns and then file forms to transfer money to the NRE account. Any mistake and you can get a tax notice.”
Another expressed, “Thank you so much for making this post. This will discourage NRI buyers from investing in Indian real estate. By this, the cost might come down so we can afford a home.”
A third posted, “I suggest only one property in India for only NRIs in Dubai or the US because neither of them gives permanent residencies or citizenship. It does not make sense for the NRIs in the UK or Canada, where they can get citizenship and own homes.” A fourth wrote, “Thank God at least we can peacefully buy one home to live in. These greedy NRIs buying five to ten flats and plots have made real estate unaffordable—not just for investment, but even for basic living.”
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)
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