To Buy or Not to Buy? NRI's 1 Crore Dilemma on Bangalore Real Estate Investment Amid Rising Prices and Return Plans

 29-year-old NRI with ₹3 crore in savings and a plan to return to India in the next two years is facing a real estate dilemma—should they invest ₹1 crore in a Bangalore property now, or wait? With Bangalore prices rapidly rising, this classic FOMO versus logic scenario is increasingly common among returning NRIs.

Key Points

• The NRI earns in foreign currency and plans to relocate to India in about two years.

• ₹1 crore is earmarked for property investment; the rest is planned for fixed deposits and mutual funds to earn ₹1–1.5 lakh/month.

• Bangalore is a top location in mind, but not a confirmed choice.

• Rising property prices in the city are creating urgency to lock in a deal now.

• Emotional, social, and peer pressure often push NRIs into early real estate commitments.

Solutions

1. Stick to the Financial Plan:

Continue with the 60:40 debt-equity split. Once back in India, a 50–55% equity shift can help optimize long-term wealth growth.

2. Explore REITs Before Physical Property:

Real Estate Investment Trusts (REITs) provide 5–7% annual returns and offer exposure to real estate growth without immediate ownership commitments.

3. Buy Only with Clarity:

If you’re sure about returning to Bangalore and living there, buying now could be wise. Otherwise, delay until the city of return is finalized.

4. Use Mutual Funds for Monthly Income:

Systematic Withdrawal Plans (SWPs) from mutual funds can help generate tax-efficient monthly income post-relocation.

5. Embrace a Hybrid Approach:

Invest in REITs or mutual funds now, then commit to a physical home once you’re in India and ready for possession and lifestyle alignment.

Conclusion

The ₹1 crore decision isn’t only about price or appreciation—it’s about timing, clarity, and personal readiness. Until the relocation plan is concrete, parking funds in REITs or other financial instruments is a wise middle path. NRIs should avoid rushed decisions and aim for long-term suitability, both financially and personally.

Source: Business today