‘Show off villas, black money’: Viral post urges NRIs to rethink buying homes in India

A viral Reddit post has sparked heated discussion among NRIs, cautioning against purchasing property in India. The author, an NRI with firsthand experience of the challenges, advised expatriates to “resist the temptation” of buying real estate — whether for investment, retirement, or as a backup plan — calling it a “nightmare” to maintain property from abroad.

The post argued that under-construction properties often come with a “premium” the moment builders know the buyer is an NRI. For those considering property as a return-to-India plan, the author warned that people tend to stay outside India far longer than planned, meaning the home could be “old by the time you return.” Even for those with concrete plans to move back within a year or two, the Redditor suggested relocating first, renting for a year or two, and then buying — because “localities would have changed a lot since you remember them and will continue to change very quickly.”

For investment purposes, the post was equally blunt: “For every success story, there will be 10 not-so-successful or even horror stories that you don’t hear about.” Residential flats were deemed particularly poor investments, and even land purchases were described as risky without trusted family to protect against encroachments.

The author emphasised that being physically absent puts NRIs at a “big disadvantage,” and added that many real estate transactions still involve black money unless buying directly from a top-tier builder — which is “also a major pain” for NRIs.

The only case where it might make sense, the post suggested, is for “immediate own use,” such as upgrading a family home for parents or siblings — with their inputs. The author also raised succession concerns: “Your kids are likely settled abroad and will have no interest in maintaining/managing property back in India,” recommending that retirees buy a smaller 2BHK later rather than a “grand villa/apt now to show off that you’re a successful NRI.”

The thread drew a flood of personal accounts. One commenter said selling property as an NRI was a “nightmare” due to TDS rules, mortgage-related cash requirements, and the cumbersome process of sending money abroad via banks like SBI. Another shared how a decade-old apartment had become a constant headache — finding tenants, paying estate agent fees, complying with new police verification rules, and competing with newer developments — ultimately leading them to sell at a loss.

Others highlighted systemic issues including squatters, corruption, unreliable contractors, and slow bureaucracy. One summed it up bluntly: “Don’t buy. It’s an outdated investment that will take up way too much of your time for what you get out of it.”

While a few users suggested that rising conservatism abroad might eventually push NRIs back to India, the overwhelming consensus was clear — owning property in India from overseas is more trouble than it’s worth.

NRI boom in real estate

India’s luxury real estate market is booming, driven by strong demand from high-net-worth individuals, NRIs, and domestic buyers looking to invest in premium properties. For many NRIs, high-end real estate is seen as a reliable way to preserve wealth, mirroring global investment patterns.

As per the report, NRIs currently make up 15-25% of investments in some of the top projects in major cities such as Gurugram, Delhi, Mumbai, and Bengaluru because of their contemporary infrastructure, thriving economy, and upscale residential options.

NRIs hailing from countries such as the US, UK, UAE, Canada, and Singapore have demonstrated significant interest in the Indian real estate market. These locations are home to affluent Indian expat communities with the financial means and inclination to invest in upscale properties.

But for several NRIs who bought into the Ozone Urbana township in Devanahalli near Bengaluru, that promise has soured — turning into a drawn-out legal and emotional ordeal.