The Indian rupee’s value is currently hovering around ₹90 to the dollar, and this trend is good news for NRI investors. The value of the NRI’s investment (in dollars) in India has increased significantly due to the increasing buying power of the dollar. As of now, one million dollars would provide an NRI with approximately nine crores (90 million rupees) in India.
This increase in purchasing power means that NRIs can now buy luxury flats and invest in many different areas, which they may not have been able to afford before. For example, if an NRI buys a flat in Mumbai, it would cost approximately 33,762 rupees (about $373) per square foot, while the same area in Bengaluru would cost about 8,870 rupees (approximately $98). If you take a look at the luxury real estate market in gateway cities such as London, New York, and Sydney, you will see that it is significantly pricier than it is in Bengaluru and Mumbai.
Why it’s significant for NRIs in 2026
The strength of the U.S. dollar affects two areas of an NRI’s life: it boosts their immediate buying power and reduces the overall impact of any home loan held in Indian rupees, as income generated in a stronger currency decreases the amount of Indian currency needed to repay that loan. In addition to these positive factors, favourable tax treatment for home loan interest payments and continued development in the form of increased job availability and price appreciation due to infrastructure development in certain areas of the country set the stage for a new wave of interest from NRIs in buying homes.
Where are NRIs directing their interest?
Cities in India continue to be a hotbed of investment for Non-Resident Indians (NRIs), with Bengaluru receiving the largest share of NRI investments according to data. Cities like Mumbai, Pune, and Hyderabad have also drawn in billions in investments from abroad as a result of creating many jobs and having excellent infrastructure and attractive rental yields for affluent individuals. Additionally, NRIs are beginning to establish foundations similar to those found in the United States. Locations with a centralisation of job creation in IT hubs, education corridors and premium micro-markets – like Whitefield, Sarjapur Road, Bandra & Powai – are particularly attractive to NRIs who are seeking both capital appreciation and rental income.
While the golden ticket provides a sense of liberalisation, it should also be treated with caution. Although the boon of an improved exchange rate gives people greater buying power, the increased purchasing power also creates exposure to the currency over the long term. Real estate is typically held over longer periods; thus, the proceeds from exiting will depend upon the future value of the rupee.
Additionally, the article highlights that despite the exchange rate boost, there is significant sensitivity to fluctuations. As an example, a 5-10% change in currency can result in tens of thousands of dollars of impact for properties valued at ₹1.5 crore ($165,600). Additionally, there are regulatory risks inherent in this area of real estate: NRIs cannot buy agricultural land or farmhouses, interest is withheld from amounts above ₹50 lakh ($55,200) under special tax withholding regulations, and managing real estate located in a different country can be challenging.
For NRIs interested in entering real estate in India starting in 2026, some practical things can be done to increase the chance of that success: working with an attorney and property manager in India; using the appropriate NRE/NRO/FCNR banking formats to mitigate compliance issues earlier on when investing into real estate; and making less-than-full investments in an initial purchase (buying one or two benchmark properties with subsequent investments continuing instead of making one large full investment).
Instead of purchasing real estate before being certain that the value of the rupee will rise due to currency gains, it is more advantageous to view it as an opportunity to invest at the right time, rather than as a guaranteed hedge against market risks or investment execution challenges.
In 2026, the foreign buyer’s favour from the dollar-rupee dynamic may create a short window of opportunity for NRIs (non-resident Indians) to make good investments. However, combining the currency advantage with thoughtful due diligence, local partnerships, and risk management based on realistic projections is the best possible strategy for taking advantage of this opportunity. While the equation seems very attractive, the importance of completing the associated homework will be significantly larger.
