Luxury Living Shifts to Smaller Cities, Attracting NRIs with Opulent Amenities
Bringing the Good Life Home: Why NRIs are Snagging High-End Homes in Secondary Cities
Over the past decade, secondary cities like Mohali, Lucknow, Coimbatore, and Indore have been blossoming into bustling financial and lifestyle hubs. With improved airports, refined social infrastructure, and a rise in multi-cultural living, these locations have become a magnet for the globally mobile Indian diaspora.
"NRIs are branching out from the traditional metro investments," says Umang Jindal, CEO of Homeland Group. "They're in search of larger, more elegantly designed homes in cleaner, more well-planned urban spaces that promise a more balanced lifestyle. Many NRIs are emotionally tied to their roots and desire to maintain a strong presence in India, but they aren't content with settling for less. They crave living spaces that match their international standards of opulence, privacy, community, and health-consciousness."
Cost efficiency remains a factor, though less so compared to investing in metro cities.
"The appeal of luxury in India has undergone a transformation," explains Prateek Mittal, Executive Director of Sushma Group. "NRIs yearn for accommodations designed with open floor plans, top-notch security, eco-responsible architecture, access to amenities such as golf courses, and proximity to natural surroundings. Tier-2 and Tier-3 cities are uniquely equipped to offer such offerings, particularly as urban pressures and congestion continue to escalate in larger cities."
The pandemic has only underscored the value of spacious, life-enhancing living spaces in clean environments. This shift in priorities has aligned perfectly with the offerings of smaller Indian cities.
"Luxury is no longer exclusively about pricey fixtures-it's about space, peace, and purpose," notes Piyush Kansal, Executive Director of Royale Estate Group. "Many NRIs are taking a fresh look at their hometowns. The confluence of emotional belonging and practical benefits is too enticing to resist. We're witnessing steady interest from professionals who are eager to make a lasting impact in India without compromising on their lifestyles."
These buyers are acquiring more than just an investment; they're crafting a future. A house in India is increasingly perceived as a long-term strategic asset-a blend of retreat and legacy. Developers are adapting as well, offering streamlined digital experiences, flexible payment plans, and post-possession services tailored to meet the requirements of NRI clients.
"The enthusiasm of NRIs is prompting the entire real estate sector, residential and commercial, to up its game," remarks Adish Oswal, Chairman of Oswal Group. "It's no longer sufficient to deliver just deluxe homes or commercial projects-NRIs today crave a comprehensive ecosystem that encompasses world-class commercial infrastructure, easy-to-use digital solutions, and forward-thinking communities. This trend extends beyond a passing fad-it signifies that secondary cities are solidifying their places on the world investment landscape."
As India's growth narrative moves beyond metropolitan confines, the luxury housing market in developing cities is evolving from niche to mainstream. For NRIs seeking a return to their roots without trade-offs in lifestyle, secondary cities are the new beacon of refined living.
Why NRIs Flock to Luxury Homes in Smaller Cities
1. Emotional Connection to the MotherlandMany NRIs yearn to preserve their Indian identity while overseas. Buying a luxury home in a secondary city permits them to create a meaningful bond with their roots and secure a tangible asset on their home turf.
2. Better Quality of LifeAs compared to congested metros, secondary cities offer cleaner living conditions, a more balanced lifestyle, and better-designed living spaces which cater to the cosmopolitan tastes of NRIs.
3. Infrastructure Ravishingly RedefinedSecondary cities like Mohali, Lucknow, Coimbatore, and Indore are swiftly developing superior social and economic infrastructure, enhancing their attractiveness as promising real estate investment destinations.
4. Wealth CreationNRIs see luxury real estate in secondary cities as a practical long-term strategy for wealth preservation and generation, aligning with global investment trends.
5. Market Asymmetry Market dynamics in major metropolitan cities are shifting towards price stability or tightening in affordable housing, making secondary cities the best bet for high-end luxury homebuyers.
6. Enhanced Financing and Ownership Alternatives Easier access to financing options, fractional ownership models, and favorable regulations (e.g., FEMA allowing NRIs to purchase homes using NRE/NRO accounts) grant them new investment avenues in secondary cities.
7. Family FocusMany NRIs invest in properties in secondary cities where their children pursue higher education, making such choices more family-oriented. The growing number of educational institutions in these cities has made them increasingly appealing for such investment decisions.
Crafting an Exemplary FutureIn conclusion, NRIs are being drawn to luxury homes in India's secondary cities due to better living conditions, thriving development, emotional attachment, strategic wealth preservation, and adaptable market and financing dynamics. This newfound trend suggests a strategic migration from traditional metropolitan investments towards dynamic, developing urban centers that offer international-grade luxury living with growth potential.
"In their desire for luxury homes that cater to their specific preferences and offer a better quality of life, many NRIs are expanding their investment portfolio beyond major metropolitan cities," says Umang Jindal, CEO of Homeland Group. "With the improved infrastructure and investment opportunities in secondary cities, these locations provide the perfect blend of emotional connection, practical benefits, and strategic wealth creation for NRIs."
"The growth and development of secondary cities create an enticing investment landscape for NRIs looking to finance luxurious real-estate properties that align with their international standards," explains Piyush Kansal, Executive Director of Royale Estate Group. "Investing in luxury homes in these cities allows NRIs to maintain a strong presence in India, as well as preserve and grow their wealth over the long term."
