Non-Resident Indians (NRIs) across the world have always had a deep emotional and financial connection to the Indian real estate market. Among all the major metros and tier‑I cities, Hyderabad has emerged as the most sought‑after destination for NRI real estate investment in Hyderabad. A survey conducted by the Confederation of Indian Industry (CII) and the real estate consultancy Anarock in late 2022 found that the Delhi National Capital Region, Hyderabad and Bengaluru were the top picks for NRIs looking to buy homes, with 22 percent of respondents choosing Hyderabad. That single data point reveals a tectonic shift in buyer sentiment towards the city. The survey further showed that 60 percent of NRIs planned to buy homes in just these three cities, underscoring Hyderabad’s rising prominence.
Context: From Regional Hub to Global Hotspot
Hyderabad’s transformation from a regional hub to a global technology and business powerhouse did not happen overnight. Over the past decade, the Telangana government has heavily invested in infrastructure, built world‑class IT corridors and streamlined regulatory processes. Major global companies — including Microsoft, Google, Amazon and TCS — have set up large campuses in the HITEC City and Gachibowli areas. This influx of investment and jobs has changed the socio‑economic landscape, creating a deep pool of renters and buyers. When NRIs compare Hyderabad to other Indian cities such as Mumbai or Bengaluru, two factors stand out: affordability and liveability. Premium apartments in Gachibowli range from ₹6,000–₹10,000 per sq ft, making them attractive for NRIs earning in dollars or dirhams.
Another important factor is the resilient performance of Hyderabad’s housing market during and after the COVID‑19 pandemic. Despite the initial slowdown in 2020, Hyderabad’s property prices remained stable. By 2022, prices began to rise again, while rental demand climbed due to the return of professionals. The depreciating Indian rupee against major currencies further boosted the purchasing power of NRIs. According to the same CII–Anarock study, NRIs accounted for 10–15 percent of homes sold in any given quarter during 2022. This participation underscores how important NRIs are to Hyderabad’s property sector.
Drivers Behind NRI Demand
- Competitive pricing and affordability: Compared to metropolitan markets like Mumbai and Delhi, Hyderabad offers high‑quality housing at relatively lower prices. In top neighbourhoods such as Gachibowli, Nanakramguda and HITEC City, luxury apartments range from ₹6,000 to ₹10,000 per sq ft, while emerging neighbourhoods like Kondapur and Narsingi offer properties at around ₹9,000–10,500 per sq ft. This affordability is a significant draw for NRIs seeking value for money.
- Infrastructure and connectivity: Hyderabad boasts an efficient metro system, the Outer Ring Road (ORR) and ongoing projects like the Regional Ring Road. These highways reduce commute times and connect peripheral localities to the main city. For NRIs, easy access to schools, hospitals and the airport is paramount, and Hyderabad delivers on that promise.
- Investor‑friendly policies: Transparency created by RERA (Real Estate Regulation and Development Act) and TS‑iPASS (Telangana State Industrial Project Approval and Self Certification System) encourages NRIs to invest confidently. RERA ensures that developers adhere to delivery timelines and maintain quality standards.
- Robust rental market: The steady influx of IT professionals and returning migrants ensures a strong rental market. Rental yields in premium neighbourhoods like Kokapet and HITEC City hover between 4–5 percent, higher than yields in many Western markets.
- Healthy appreciation: Hyderabad has seen 8–10 percent annual price appreciation over the past five years. Combined with rental income, this appreciation creates compelling long‑term returns.
Why Hyderabad Tops NRI Wish Lists
Safety and quality of life: NRIs often prioritise safety and lifestyle amenities. Hyderabad scores high in these areas, with low crime rates compared to other Indian metros and a range of high‑quality hospitals, schools, parks and malls. Planned development around HITEC City and Gachibowli ensures that residents enjoy wide roads, landscaped open spaces and recreational facilities. Localities like Nanakramguda and Somajiguda offer luxury gated communities with 24/7 security and integrated services. For NRIs returning with families, access to reputable international schools and modern healthcare is crucial.
Cultural connection: For many NRIs, purchasing property in Hyderabad is not just a financial decision — it is an emotional one. A home in Hyderabad allows them to maintain roots in their home country, celebrate cultural festivals, and provide a place for extended family to gather. The city’s rich heritage, friendly residents and vibrant food scene make returning to Hyderabad an attractive prospect. Neighbourhoods like Banjara Hills and Jubilee Hills offer upscale shopping and dining options, while the city’s historic core provides a cultural link.
Currency advantage: A weaker rupee increases the buying power of NRIs. Those earning in U.S. dollars, euros or Middle Eastern currencies find that a similar budget can afford a much larger or more luxurious property in Hyderabad compared to other markets. Many NRIs therefore view Hyderabad real estate investment in Hyderabad as both a hedge against currency depreciation and a way to diversify their portfolios.
Strategic Neighbourhoods for NRI Buyers
- Gachibowli: This cosmopolitan hub is adjacent to the Financial District and HITEC City and houses major multinational companies and top educational institutions. Average property prices are around ₹11,000 per sq ft. A well‑connected neighbourhood with modern amenities and a variety of premium apartments, Gachibowli delivers strong rental yields and long‑term appreciation.
- HITEC City: As the epicentre of Hyderabad’s IT industry, this area commands ₹12,500 per sq ft on average. The combination of excellent infrastructure, international standards of living and rental demand makes HITEC City an ideal choice for NRIs looking for steady cash flow.
- Kokapet: Once an emerging suburb, Kokapet is fast becoming a luxury destination. Prices average ₹10,950 per sq ft. Its proximity to the Financial District and scenic surroundings attracts NRIs seeking upscale villas and apartments.
- Madhapur and Kondapur: These localities lie between Gachibowli and HITEC City. With average prices of ₹9,800–₹9,600 per sq ft, they offer a balanced mix of affordability and connectivity. Young professionals and families favour these neighbourhoods, ensuring strong rental demand.
- Nanakramguda and Somajiguda: Located in the Financial District and central Hyderabad respectively, these neighbourhoods provide luxury gated communities with premium amenities. Nanakramguda’s average price is ₹11,450 per sq ft, while Somajiguda offers central location and high rental demand.
Tips for NRIs Considering Property in Hyderabad
- Due diligence: Always invest in RERA‑registered projects and verify the developer’s track record. Examine the title deed, building approvals and other legal documentation to avoid disputes.
- Understand taxes and repatriation: Income from Indian property is taxable in India. However, India has Double Taxation Avoidance Agreements (DTAAs) with many countries, and NRIs can repatriate proceeds from up to two properties after paying taxes. Consult a tax expert to plan repatriation.
- Use NRE/NRO accounts: All payments must be routed through NRE or NRO accounts. These accounts facilitate currency conversion and compliance with the Foreign Exchange Management Act (FEMA).
- Seek professional advice: Consider partnering with property advisors who specialise in NRI real estate investment in Hyderabad. They can provide insights into local market trends, negotiate with developers and manage property post‑purchase.
