Buy vs Rent Luxury Property in India 2025

The Rise of Luxury Housing in 2025

India’s luxury residential market has entered a new cycle of demand. According to a survey conducted by India Sotheby’s International Realty, over 60 per cent of HNIs and Ultra-HNIs plan to invest in real estate within the next two years, reflecting a strong conviction in the asset class’s resilience and legacy value (Business Standard).

Key drivers of demand include:

Capital Preservation: Luxury real estate continues to serve as a safe-haven asset, particularly during periods of macroeconomic volatility
Lifestyle Upgrades: Post-pandemic shifts have redefined preferences, with buyers prioritising larger layouts, private amenities, and wellness-oriented designs
Diversification through Real Assets: For investors allocating capital across asset classes and geographies, residential real estate remains a tangible, inflation-hedged store of value
Intergenerational Utility: Luxury properties are increasingly being positioned as long-term holdings intended for succession and family consolidation

In this context, the ownership versus rental equation must be viewed not merely through the lens of cost, but through its strategic contribution to one’s broader investment framework. To begin, let’s examine the value proposition of buying a luxury home, where emotional permanence intersects with long-term capital logic.

Buying a Luxury Property: Equity, Control, and Long-Term Value

Owning a luxury home, whether in Mumbai’s Altamount Road or Pune’s Kalyani Nagar, offers more than residential stability. It represents long-term capital anchoring, personalisation, and portfolio visibility.

The benefits include:

Capital Appreciation: In 2024, luxury housing markets across India’s prime micro-markets recorded y-o-y sales growth of 13% to 16%, reflecting sustained end-user demand and continued investor confidence, particularly in supply-constrained, high-intent locations (Knight Frank).
Asset Customisation: Ownership enables the flexibility to upgrade, redesign, or lease the property without external limitations
Stability and Legacy: Especially relevant for families building intergenerational wealth or establishing a permanent urban foothold

However, acquisition comes with associated costs. Stamp duty, registration, and GST (for under-construction units) can significantly increase the all-in purchase price. Ongoing maintenance and property taxes add further overhead. Additionally, rental yields in core luxury markets remain modest, typically between 2.5% and 4%, which may compress short-term income returns (Rustomjee).

That said, for those focused on luxury property ROI in India, ownership in well-located, supply-constrained markets with consistent demand and future redevelopment potential can deliver meaningful value over a longer investment horizon.

While ownership offers control and capital anchoring, the other side of the equation — renting — presents a compelling case for liquidity and lifestyle flexibility.

Renting a Luxury Property: Flexibility Without Capital Lock-In

On the other side of the debate is the flexibility that renting offers, particularly appealing to global citizens who value mobility and asset-light living.

According to Anarock, rental values in key micro-markets across India’s top seven cities rose by up to 72% between end-2021 and June 2024, with cities like Bengaluru, Pune, and Chennai witnessing higher rental growth than capital appreciation. This sharp rise not only signals improved rental yields but also reflects sustained demand for high-quality leased homes in prime locations, prompting many tenants to reassess the buy-rent equation.

The advantages of renting include:

Liquidity Retention: Capital remains unblocked and available for alternative investments
Location Flexibility:Tenants can change neighbourhoods or cities with minimal friction
No Ownership Liability: Renters avoid ongoing costs such as maintenance, taxes, and compliance

However, the pros and cons of renting luxury property must be carefully weighed. In premium locations, long-term rent outflows can begin to mirror the initial capital required for ownership, especially for those with the means to finance a purchase. That said, for short-term stays, transitional use, or evaluating a market before committing, renting remains a practical option.

To navigate these choices effectively, it helps to compare both routes side by side.

Comparing Buying vs. Renting: A Strategic Perspective for 2025

The decision around is it better to buy or rent a luxury home in 2025 is not a one-size-fits-all equation. It must be viewed through the lens of investor intent, capital allocation strategy, and lifestyle permanence. While buying may suit those seeking legacy assets or long-term appreciation, renting continues to appeal to those prioritising liquidity and mobility.

Here’s a strategic comparison table to aid your decision-making process:

Factor	Buying a Luxury Property	Renting a Luxury Property
Capital Deployment	High upfront cost with long-term asset creation	No capital lock-in, funds remain deployable
Ownership Flexibility	Full control over design, leasing, and resale	Subject to lease terms, limited customisation
Cost Over 5 Years	High acquisition + maintenance, offset by value gain	High cumulative rent with no asset creation
Tax & Compliance	Involves property tax, registration, and reporting	Minimal compliance burden
Liquidity	Low to moderate, depending on market conditions	High liquidity, easy to exit
Ideal For	Long-term end users, legacy planning, investors	Short-term residents, global executives

Investors evaluating luxury housing trends in India in 2025 are increasingly moving away from binary choices. Both buying and renting have valid roles depending on intent, holding period, and financial strategy. Many UHNIs are now adopting a hybrid approach, owning anchor properties in key markets while renting flexibly in others based on business or lifestyle cycles.

Ultimately, the buy vs. rent luxury property India 2025 decision is not about one being better than the other, but about aligning real estate with wealth goals, lifestyle choices, and market timing.

At SQUAREA, we offer curated access to India’s most prestigious properties and exclusive residential addresses. For tailored investment guidance, reach out at hello@squarea.io or call +91 90 9641 9641.

Expat Leasing in India: The Untapped Premium Rental Market Developers Are Ignoring

India’s growing community of expatriates is quietly redefining demand in the country’s rental and premium residential investment market. With global corporations, embassies, and consulates expanding in cities such as Mumbai, Gurugram, Bengaluru, Hyderabad, and Pune, the appetite for well-managed, high-spec rental homes has never been stronger. Yet, the supply of such residences remains limited. For investors and developers, this is an overlooked segment with real depth - one defined by long-term leases, dependable tenants, and healthy returns. Expat leasing is emerging as a serious asset class within Indian real estate, bridging global expectations with local opportunity. Understanding The Expat Leasing Market in India  Expat leasing refers to premium residences rented by foreign professionals, diplomats, and senior executives working in India. Most are employed by multinational firms, embassies, or global institutions and prefer short to medium-term stays in secure, well-serviced neighbourhoods. Prominent expat hubs include:

Mumbai: Bandra, Lower Parel, and Worli for diplomatic and financial communities

Delhi-NCR: Vasant Vihar, Chanakyapuri, and Gurugram’s Golf Course Road for diplomatic and corporate clusters

Bengaluru: Indiranagar, Koramangala, and Whitefield for technology professionals

Hyderabad: Gachibowli and Banjara Hills for IT and pharma executives

Pune: Kalyani Nagar, Koregaon Park, and Kharadi for multinational and automotive tenants

These tenants prioritise convenience, compliance, and service over cost, seeking fully furnished, professionally managed homes that meet global living standards. As India’s technology and corporate presence expand, demand for such housing will only strengthen, creating a long-term, premium leasing opportunity. Why Expat Leasing Deserves Developer Attention Despite steady demand, most luxury developers in India still focus on outright sales. This leaves the leasing segment underdeveloped, missing both recurring revenue and long-term asset appreciation. Expat leasing bridges that gap by combining stable income with enhanced brand value. Developers stand to gain through:

Higher Rental Premiums: Expat tenancies often command 15-30% higher rents due to service inclusion and globally benchmarked interiors.

Lower Vacancy Risk: Diplomatic and corporate contracts ensure predictable, long-term occupancy.

Brand Perception: Properties known for expat leases earn stronger reputations among investors and institutional clients.

Portfolio Diversification: Leasing creates a consistent income stream alongside capital appreciation.

Building leasing-ready homes with professional management, serviced infrastructure, and compliance frameworks can unlock this premium audience, one that values reliability and experience as much as luxury. Once developers understand the opportunity, the next step is identifying what expats actually prioritise when choosing homes in India. What Expats Look For In Indian Rentals Expat tenants are not driven by price sensitivity but by lifestyle continuity. Their decision-making is shaped by how seamlessly the property fits into their work-life rhythm.  Here’s what expats usually look out for:

Fully Furnished Apartments: Move-in-ready units with contemporary interiors, appliances, and housekeeping.

Prime Connectivity: Easy access to business districts, airports, and metro networks.

Global Amenities: Fitness centres, concierge services, and recreational spaces.

Secure, Compliant Ownership: RERA-registered projects with transparent lease structures.

Community Living: Proximity to international schools, clubs, and social hubs.

In cities like Pune and Bengaluru, this segment is growing rapidly as global tech parks, co-working hubs, and corporate campuses attract international professionals seeking ease and comfort over ownership. As expat preferences evolve, so too does investor interest in yield-backed real estate that aligns with these long-term housing trends. Investment Potential: Yield, Stability, And Long-Term Value The expat rental segment offers one of the most consistent yield profiles within Indian residential real estate. Premium apartments in established expat enclaves can earn between Rs. 2 lakh and Rs. 5 lakh per month, outperforming traditional urban rentals by a wide margin. Investment advantages include:

Consistent Rental Demand: Driven by corporate relocations, diplomatic postings, and global mobility programs.

Stable Yields: Reliable occupancy and lease renewals ensure predictable cash flow.

Institutional Backing: REITs and leasing funds are increasingly exploring managed rental assets.

Hedge Against Market Cycles: Long-term contracts insulate investors from short-term volatility.

For investors, partnering with developers offering managed leasing or corporate housing tie-ups ensures stability, scalability, and institutional-grade performance.  The Road Ahead: From Ignored Niche To Structured Asset Class Expat leasing in India is transitioning from an overlooked rental segment to a defined investment category. Its convergence of high-yield potential, predictable occupancy, and global tenant quality positions it as a natural progression in India’s maturing housing market. Developers who integrate professional leasing management, from service design to tenant engagement, will gain long-term revenue stability, investor confidence, and international credibility. For investors, this evolution represents more than just steady returns, it signifies participation in a premium, globally aligned asset class that bridges lifestyle and value creation. At SQUAREA, a global real estate advisory firm, we help investors access India’s most dynamic premium real estate opportunities, from expat-focused rental assets to mixed-use developments in emerging global hubs. Our curated portfolio is built on transparency, yield potential, and market foresight. For tailored investment guidance, reach us at hello@squarea.io or call +91 90 9641 9641.

20 December 2025

NRI Taxation in Real Estate: Structuring Returns, Repatriation, and Compliance the Smart Way

Luxury property investment continues to be one of the most preferred investment avenues for Non-Resident Indians (NRIs). From luxury apartments in Mumbai to second homes in Goa, property ownership in India offers both emotional and financial value. Yet, the real returns lie not just in appreciation, but in understanding taxation, repatriation, and compliance. With India’s evolving tax ecosystem, NRIs can now manage property-related earnings efficiently, provided they structure transactions with foresight. This guide explains how NRI taxation for real estate investment in India works and how to manage property ownership, sales, and fund repatriation efficiently. Understanding How NRI Taxation Works Taxation for NRIs in India is straightforward - only income earned, accrued, or received in India is taxable. Income earned abroad and retained overseas is not taxed in India (HSBC). For real estate, taxable income typically includes:

Rental income from property in India

Capital gains from selling property in India

Interest earned on deposits linked to property transactions

This framework ensures transparency while preventing double taxation when combined with India’s Double Taxation Avoidance Agreements (DTAA). Once an NRI earns income from property, the next step is understanding how that income is taxed - starting with rent. Tax on Rental Income for NRIs When an NRI rents out property in India, the tenant is legally required to deduct tax at source (TDS). The rate is 30% (plus surcharge and cess, capped at around 39%) under Section 195 of the Income Tax Act. (ICICI Bank) NRIs can claim deductions on:

Municipal taxes paid by the owner

Standard deduction of 30% towards maintenance

Interest on home loans used to buy or construct the property

Rental income is typically routed through an NRO account and can be repatriated once all applicable taxes are settled. If the NRI resides in a country with a DTAA, they can claim a credit for taxes paid in India in their country of residence, ensuring the same income isn’t taxed twice. Once the rental aspect is managed, the next stage where taxation applies is during the property sale. Tax on Sale of Property: Short Term vs Long Term When an NRI sells property in India, the tax treatment depends on how long the asset was held.

Short-Term Capital Gains (STCG): If the property is sold within 24 months of purchase, the gain is taxed at the applicable income tax slab rates.

Long-Term Capital Gains (LTCG): If sold after two years, the taxation varies based on the purchase date:

Properties purchased before 23 July 2024 are taxed at 20% with indexation benefits.

Properties purchased on or after 23 July 2024 are taxed at a flat 12.5% without indexation. (ClearTax)

Indexation adjusts the purchase cost for inflation, reducing the effective tax burden on older assets. The buyer is required to deduct TDS before making payment, though the NRI seller can apply for a lower or nil TDS certificate if the actual tax liability is lower. With the sale completed, the next question most NRIs face is how to transfer the sale proceeds abroad legally. Repatriation Of Sale Proceeds Repatriation refers to transferring money from India to an overseas account after a sale. It is regulated by the Reserve Bank of India (RBI) under the Foreign Exchange Management Act (FEMA). An NRI can typically repatriate up to USD 1 million per financial year from India after fulfilling tax obligations. (ClearTax) To repatriate sale proceeds, the following must be in place:

Proceeds credited to an NRO or NRE account

Form 15CA (declaration of payment) and Form 15CB (CA certificate confirming tax compliance)

All taxes on capital gains paid in India

Transactions executed through an authorised dealer bank

Repatriation done through official banking channels ensures compliance and protects investors from regulatory hurdles in the future. Once compliance is ensured, tax efficiency becomes the next strategic step. How To Optimise Tax Efficiency Smart structuring can significantly reduce tax outflow while improving liquidity. NRIs can optimise their returns through:

Claiming deductions: Utilise property tax, housing loan interest, and standard maintenance deductions.

Leveraging DTAA benefits: Prevents double taxation on the same income.

Using indexation benefits: Reduces long-term capital gains tax liability.

Applying for lower TDS certificates: Ensures that the tax deducted matches the actual liability.

When these provisions are aligned early, they help maximise net yield and ease future fund movement. However, compliance remains the cornerstone of sustainable investment success. Compliance Checklist For NRIs Taxation for NRIs isn’t complex, but it demands discipline. Key compliance requirements include:

Possessing a valid PAN for filing returns and receiving TDS credits

Filing Income Tax Returns (ITR) annually if taxable income exists in India

Maintaining a record of sale deeds, TDS certificates, and bank statements

Using authorised banking channels for all repatriations

Engaging a chartered accountant with cross-border taxation experience

These steps ensure transparency and prevent delays in refunds, repatriation, or scrutiny. Ultimately, compliance isn’t just regulatory - it’s strategic, enhancing confidence among lenders, buyers, and tax authorities alike. Aligning Taxation With Wealth Strategy For NRIs, taxation is a part of an integrated wealth strategy. Real estate in India can serve multiple purposes: steady rental yield, capital growth, and diversification against global market volatility. Structuring ownership, timing sales efficiently, and planning repatriation well in advance turn real estate from a static holding into a dynamic asset. As global capital mobility increases, NRIs who manage compliance proactively stand to benefit from both stability and scalability. At SQUAREA, a luxury real estate advisory, we simplify NRI real estate investments, right from acquisition to exit. Our advisory services help investors navigate taxation, repatriation, and structuring with clarity and precision. Each property in our portfolio is pre-assessed for regulatory compliance and long-term growth potential. For tailored investment guidance, reach us at hello@squarea.io or call +91 90 9641 9641.

13 December 2025

India’s Luxury Hubs: Top 10 Cities Poised for Premium Real Estate Growth

India’s premium residential investment market is entering a defining decade. With wealth creation at an all-time high and global investment confidence returning, the segment is expanding beyond traditional metros into new zones of aspiration. The country’s luxury residential market, valued at USD 57.87 billion in 2025, is projected to reach USD 98.04 billion by 2030, growing at a steady 11.12% CAGR. (Mordor Intelligence) This surge is fuelled by infrastructure-led development, global lifestyle integration, and sustained interest from non-resident Indians (NRIs). What was once concentrated in Mumbai or Delhi is now diffusing across high-growth corridors, redefining the geography of luxury itself. India’s Evolving Luxury Landscape Over the past few years, India’s premium housing demand has shifted from location to lifestyle. Buyers now seek integrated neighbourhoods with branded residences, concierge services, and architectural innovation. Developers are responding with high-rise towers, expansive villas, and mixed-use formats that blend privacy, design, and amenities once exclusive to global capitals. Mumbai still dominates with around 33% of India’s total luxury housing market, but cities like Hyderabad, Pune, and Ahmedabad are emerging as serious contenders. This diversification signals a broader maturity, one where luxury is defined by quality of life, not just postcode. (Mordor Intelligence) As India’s urban evolution accelerates, the next phase of premium housing growth will be led by ten cities that combine infrastructure, affluence, and aspirational living. Top 10 Indian Cities Poised for Luxury Real Estate Growth Each of these destinations demonstrates strong fundamentals, from international connectivity and cultural capital to economic opportunity and liveability.

Mumbai: India’s Global Capital of Luxury

Mumbai remains the benchmark for premium real estate. Its South and Central zones, from Worli and Lower Parel to BKC, continue to command top-tier valuations. With luxury market share exceeding one-third of India’s total, the city’s vertical transformation, driven by redevelopment and sea-link infrastructure, ensures its continued dominance.

Delhi: Heritage Meets High-Value Real Estate

Delhi’s luxury housing market has climbed to the sixth spot globally in luxury home price growth, with a 6.7% value rise in Q4 2024 (GQ India). Localities like Lutyens Bungalow Zone, Golf Links, and Vasant Vihar remain timeless, while New Gurugram and Aerocity are fast becoming contemporary investment hotspots for next-generation buyers.

Hyderabad: The Fastest-Growing Luxury Market

Hyderabad leads India’s luxury growth trajectory with a projected 13.12% CAGR through 2030. The city’s strategic IT corridor, coupled with its affordability-to-luxury transition, has made it a magnet for both HNIs and NRIs. Projects in areas like Jubilee Hills, Gachibowli, and Kokapet are setting new benchmarks for architectural design and liveability. (Mordor Intelligence)

Bengaluru: The Tech City with Global Appeal

Bengaluru continues to attract affluent homebuyers, driven by its cosmopolitan culture and economic resilience. High-end projects in Whitefield, Koramangala, and North Bengaluru combine modern aesthetics with sustainable living. The city’s growing base of tech entrepreneurs and expat executives ensures steady luxury absorption.

Pune: The Rising Star of Western India

Once known primarily for its academic institutions, Pune has matured into a thriving hub for lifestyle and luxury living. Neighbourhoods such as Kalyani Nagar, Koregaon Park, Kharadi, and Baner are witnessing a wave of branded developments and designer residences. Its proximity to Mumbai, strong infrastructure, and cleaner air make it ideal for investors looking to buy luxury flat in Kharadi Pune and secure long-term growth.

Chennai: Heritage, Hospitality, and High-End Housing

Chennai’s luxury demand is concentrated in neighbourhoods such as Boat Club Road, Poes Garden, and ECR. The city combines cultural legacy with a growing appetite for contemporary design. Developers are increasingly adopting high-rise, sea-facing formats to cater to the evolving aspirations of global and domestic buyers.

Ahmedabad: A Quiet Performer with Strong Fundamentals

Ahmedabad’s transformation into a luxury market has been steady yet impactful. Its combination of industrial strength, robust connectivity, and emerging lifestyle districts like Shilaj and SG Highway has positioned it among India’s most stable high-end investment zones.

Gurugram: NCR’s New-Generation Luxury Corridor

Gurugram continues to redefine modern luxury with expansive gated townships, golf-side villas, and branded residences. Developments in Golf Course Road, DLF Phase V, and New Gurugram blend international design with world-class infrastructure, appealing to global investors and young entrepreneurs alike.

Goa: The Lifestyle Capital of Second Homes

Goa’s premium real estate market has transitioned from seasonal to year-round appeal. High-end villas and waterfront residences in Assagao, Siolim, and Nerul now attract both NRIs and domestic investors seeking wellness-oriented living. With its improving infrastructure and curated luxury experiences, Goa remains India’s most aspirational holiday-home destination.

Kochi: Southern India’s Emerging Luxury Haven

Kochi’s rise is supported by its port economy, metro expansion, and cultural tourism. Waterfront developments and serviced apartments are gaining traction among HNIs from Kerala’s global diaspora. The city’s balanced mix of lifestyle, connectivity, and affordability offers long-term appreciation potential. The Common Denominators: What Unites These Luxury Markets While each city’s story is distinct, certain themes connect their growth trajectories:

Infrastructure expansion drives accessibility and investor confidence

Rising disposable incomes and wealth creation among HNIs fuel demand

NRI participation ensures steady capital inflows and global design influence

Developer innovation in branding, design, and amenities enhances value perception

Sustainability and ESG alignment are becoming non-negotiable in new launches

As India’s luxury real estate grows more sophisticated, these shared factors will continue to define where value is created and sustained. The Decade Ahead: A Broader Definition of Luxury Luxury in India is no longer confined to scale or address. It’s evolving into a blend of design intelligence, wellness, sustainability, and exclusivity. From branded residences to smart, green communities, the market’s evolution mirrors global standards while retaining regional identity. The next decade will see these ten cities at the forefront of this shift, leading India’s transformation from a price-driven market to one defined by experience, credibility, and long-term value creation. At SQUAREA, we offer curated access to India’s most distinguished properties. Each asset in our portfolio is selected for its architectural distinction, investment potential, and alignment with tomorrow’s lifestyle priorities. For bespoke investment guidance, reach us at hello@squarea.io or call +91 90 9641 9641.

Buying vs. Renting in the Luxury Segment: What Works Better in 2025?