Branded Residences vs. Luxury Homes: The UHNI ShiftWhat Influences Property Prices in India (2024-25)

Real Estate in Pune - Factors Affecting Property Prices in India: Insights for Homebuyers.

Market Outlook FY 2024-25

Experts predict moderate growth for the Indian real estate market. ICRA and Colliers suggest a shift from last year’s rapid expansion to steadier progress. ICRA anticipates price stabilization, while Colliers highlights infrastructure projects and economic recovery as key drivers of resilience.

The seven major metros—Mumbai, Delhi NCR, Bangalore, Chennai, Pune, Hyderabad, and Kerala—are set to experience varied growth:

Mumbai:: 5–8% rise, driven by metro expansion and coastal projects.
Bangalore & Hyderabad: Increases of 6–9% and 7–10%, respectively, due to the IT boom.
Chennai & Pune: Expected gains of 5–7% and 6–8%, aided by residential demand and metro expansions.
Kerala: : 3–5% growth from NRI investments and tourism.

(Source: CBRE India, JLL India, Colliers)

Factors Driving Property Prices in India

Economic Growth

The nexus between economic growth and property prices is well-established. India’s real GDP expanded by 7.2% in FY23, the highest among major economies, fueling real estate demand. Q1 2024 saw record residential sales with 74,486 units sold, driven by large-scale projects, smart city initiatives, and urban renewal programs.

Interest Rates

Interest rates are a key determinant of property pricing factors to consider. Lower rates reduce borrowing costs, boosting demand, while higher rates may curb it. RBI’s 2024–25 monetary policy aims to balance inflation and growth, shaping housing market trends accordingly.

Government Policies and Incentives

Government policies directly impact the supply-demand curve of the real estate market in India. Policies like the Real Estate (Regulation and Development) Act (RERA), 2016 have increased transparency, boosting buyer confidence. The Pradhan Mantri Awas Yojana (PMAY) and GST reductions on under-construction properties enhance affordability, stimulating investments in new developments.

Urbanization and Population Growth

With 600 million people expected to live in cities by 2030 (40% of India’s population), housing demand is on a continuous rise. Bangalore, Hyderabad, and Pune are key beneficiaries, driven by industrial growth and skilled professional inflows.

Location and Infrastructure Development

The quality of infrastructure is another factor that determines property value and trends. Areas well connected with transport, educational institutions, and health facilities attract a premium. Infrastructure projects like the Mumbai Trans Harbour Link and Bangalore’s Namma Metro are expected to raise property prices by 20–30% in adjacent areas, highlighting the importance of connectivity for real estate appreciation.

Supply and Demand Dynamics

Building material costs (steel, cement, labor) influence property pricing factors to consider. Developers often pass these increases to buyers, especially in high-cost cities like Mumbai, where land acquisition also inflates prices.

Employment Opportunities and New Job Creation

Job growth in IT and finance sectors, especially in Bangalore, Hyderabad, and Pune, increases housing demand. The Indian IT market is expected to reach $19.93 billion by 2025, further boosting residential real estate./p>

Development of Industry

Industrial corridors like the Delhi-Mumbai and Chennai-Bangalore are enhancing property values in surrounding areas, supported by job creation and infrastructure improvements.

Regional Real Estate Trends

Property price trends vary significantly across different regions, influenced by factors such as local economic activity, infrastructure development, and the regulatory environment. Pune’s residential market claimed a substantial 16% of new residential launches across India’s top cities in Q2 2024 — adding around 18,900 units and marking a steady 1% quarterly increase.

Understanding the several factors affecting property prices in India is very important for homebuyers and investors planning to invest in the real estate market in India. Staying informed about these factors is key to capitalizing on opportunities and navigating potential challenges.

For those looking to deepen their understanding and make informed decisions in this dynamic environment, consulting with experts in the field can be invaluable. SQUAREA offers insights that can help you navigate these complexities and align your investments with market trends.

Why you should look at buying a 2 BHK in Kharadi, East Pune, for a bankable return on investment

With an area of 8 sq. kms., Kharadi has transitioned from a peripheral CBD into one of Pune’s most promising residential and commercial micro-markets. Today, Kharadi hosts 100+ global corporates, supported by its proximity to Pune airport, the hospitality clusters of Viman Nagar and Kalyani Nagar, and connectivity to over 11 micro-markets, unlike most other districts of Pune. Kharadi currently supports over 3 lakh working professionals across 23 mn sq. ft. of Grade A commercial space. However, this number is expected to grow further, with another 20 mn sq. ft. set to become operational over the next 1–3 years, potentially bringing in an additional 5 lakh professionals working out of Kharadi. A noticeable shift across urban workforces is the growing preference for living closer to the workplace. A large section of professionals falls within the 25–35 age bracket, and convenience now plays a bigger role in housing decisions. Many prefer the option of walking or cycling to work, especially when offices are part of large business districts such as World Trade Centre Pune, EON IT Park, International Tech Park Pune, Vantage, and Gera Commerzone.  Shorter commutes are increasingly becoming an expectation rather than a luxury, helping professionals maintain more predictable routines and better work-life balance. Kharadi offers the options for 2-BHK starting from ₹85 lakh and going up to ₹1.5 crore, where buyers continue to see higher-than-average rental returns. While many markets lose their attractiveness as they become saturated with oversupply and rental yields begin to dip, but in the case of Kharadi, there is a visible growth trajectory over the next few years, driven by commercial expansion and demand flowing in from multiple micro-markets. The 2 BHK remains the most liquid and resilient product category, supported by steady demand and strong resale potential with capital value appreciation over time. It also offers better flexibility at exit compared to larger ticket-size configurations.

In a micro-market like Kharadi, near-possession launches are attracting first-time buyers and investors alike, while ready-to-move-in inventory continues to command a premium for immediate occupancy. Six years ago, around 2019–2020, 2-BHK apartments in Kharadi typically ranged between ₹55 lakh and ₹80 lakh, depending on proximity to major office hubs, developer reputation, and amenities. Today, the same configuration largely falls within the ₹85 lakh to ₹1.25+ crore bracket. The area has witnessed meaningful appreciation, with current residential values generally ranging between ₹10,000 and ₹15,000 per sq.ft, compared to roughly ₹7,000 per sq.ft about six years ago, reflecting rapid growth supported by IT-led demand and infrastructure development. Kharadi is also one of the few neighbourhoods in Pune that offers a unified residential journey within the same micro-market. Buyers can enter through compact studios priced around ₹45 lakh, move into 2-BHK homes in the ₹85 lakh to ₹1.25 crore range, and gradually upgrade to larger typologies such as 3, 3.5, and 4-BHK residences or penthouses priced between ₹3 crore and ₹10 crore. At the top end, international-style villas are available in the ₹14 crore to ₹35 crore range. The micro-market continues to attract developer interest as well, with new supply being planned to cater to evolving demand. Notable among the upcoming developments is a new launch by Godrej Properties in Kharadi, expected to offer 2, 3, and 4-BHK homes. The entry of established developers at scale typically signals long-term confidence in a location and contributes to the overall strengthening of the residential market.

Kharadi’s growth is being shaped by fundamentals rather than short-term momentum. Strong employment visibility, improving infrastructure, sustained developer interest, and a wide range of residential options continue to support long-term housing demand. For buyers evaluating 2-BHK homes with stable rental income, capital appreciation potential, and resale flexibility, Kharadi remains one of East Pune’s more dependable residential investment micro-markets. To learn more, connect with us at hello@squarea.io or call +91 90 9641 9641.

27 December 2025

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.

Factors Affecting Property Prices in India: Insights for Homebuyers