Is Bengaluru still a top investment choice for NRIs with prices almost matching London and New York?
With Bengaluru property prices nearing London and New York, a Reddit debate questions if NRIs should continue investing in the tech hub's real estate market
Should NRIs invest in Bengaluru’s real estate? Redditors are divided. Some argue that with property prices now on par with global cities like London and New York, NRIs should reconsider investing in the city. Others suggest that more NRIs may be inclined to invest in India, especially following Trump’s crackdown on tech visa holders. The post also advises NRIs to negotiate prices downward before making a purchase.
“To all the NRIs, please hold off buying apartments in big Indian cities for a while. I was checking the cost of apartments in Bangalore and Hyderabad. I was surprised to notice that the cost of 3 bhk is around 2-2.5 crores in the outer parts of the city (city border). Then, I checked the cost in cities like London and Newyork and found them to be the same cost. These guys are getting extremely greedy. They are expecting NRIs to buy these. So, please do not buy without negotiating it downwards. Invest your money in stocks,” the user wrote.
Also Read: Bengaluru tech layoffs: Is it the right time to invest in real estate? Netizens weigh in
The sentiment struck a chord with several others, who chimed in with similar concerns about inflated valuations and eroding infrastructure.
“I'm not rich, but I wanted to buy one small plot in Bengaluru, but looking at the prices and crumbling infrastructure, I held back. Yesterday, I saw they have uprooted all the century-old trees, which are as wide as 10 m, all along the road to expand it. This was the last paradise of greenery road in the outer limits of Bengaluru. The greed knows no limits,” one person shared.
“I was planning to buy one, so I decided to go for one in Dubai. Still WIP. Indian real estate is super bloated, and it's a corrupt money sink,” said another.
A third user pointed to poor returns on investments in metros. “Best decision I’ve taken in past 5 years is not to invest on Bangalore real estate. All my partners who invested have net lost money or barely broke even on any property bought post-2021 with added inflation. I invested the same in a land development in tier 2 city outskirts and made 5x on my investment. Unless there’s a 20-30% correction on the current price, it’s safer to stay outside. There’s a lot of dead inventory on the outskirts.”
Others highlighted how international comparisons don’t tell the full story. “London, New York City prices have also shot up after covid. They are definitely higher than Bengaluru/Mumbai/Gurgaon. But your main point is valid. People are buying like crazy. Because Trump is targeting visa holders, more NRIs are going to prefer buying in India rather than in the USA. I'm afraid your well-intentioned advice will be largely ignored.”
The belief that real estate prices will never truly fall seems entrenched. “In the last 40 years, property prices rarely came down. If they came down for some time, it was 10% or stagnant for a few years. That is the unfortunate reality, all due to our growing population and economy. Prices are not justified, but some people are ready to pay, and hence the price will never come down,” said one Redditor.
