Beyond returns: How NRIs are rebuilding real estate as a core portfolio asset in 2026

Real estate has occupied a unique place in the investment decisions of Non-Resident Indians (NRIs) for a long time. A property in India is often an emotional anchor for them. It can be a ‘home for the future’, ‘a connection to family roots’, or ‘a retirement plan waiting to unfold’.

In the year 2026, this relationship is undergoing a significant shift, when the real estate market is becoming broader, deeper and more organised. Real estate is no more a standalone purchase today, but a strategic asset. Sitting alongside equities, global funds, fixed income products and alternative investments, it is becoming a core portfolio asset for NRIs.According to Cushman & Wakefield's India Outlook 2026 report, the sector is poised for continued growth across residential, commercial, retail, logistics, data centres and institutional investments.

Rising participation from global investors, expanding REIT opportunities and growing demand across multiple asset classes are creating a far more diverse investment landscape than what existed even a few years ago.The way NRIs are investing in Indian real estate is also changing. Rather than investing with all their money into a single unit or project, they are looking at different options the sector offers. NRIs are no longer limiting themselves to buying a single home in India.

Premium housing remains a preferred choice, but they are exploring REITs, commercial properties and other real estate-backed investment options also that offer regular income. Better exchange rates and lower interest rates have made Indian real estate more attractive for NRIs. At the same time, technology in the form of digital tools has made it easier to explore properties, complete transactions and manage investments from anywhere in the world.

A greater transparency has also increased trust in the market.Sidharth Chowdhry, Managing Director at Dalcore, said "In periods of market volatility, HNIs and NRIs are increasingly viewing luxury real estate as more than just a lifestyle asset it's emerging as a strategic portfolio stabiliser. Unlike traditional asset classes that are often subject to short-term market fluctuations, premium residential real estate offers a combination of capital appreciation potential, tangible asset ownership, and long-term value preservation.

This trend is particularly evident in the growing preference for luxury and branded residences, where buyers are seeking not only prime locations and superior living experiences but also the assurance of quality, exclusivity, and long-term value associated with trusted brands."

Although residential segment remains an important part of this story, the reasons behind demand have evolved. The Cushman & Wakefield report projects premium and luxury housing to remain a key growth driver in 2026, supported by rising incomes, lifestyle upgrades and increasing NRI participation.

As per the report, new housing launches would cross 300,000 units in 2026, on the back of demand continuing to remain strong for well-located projects and quality developments.

This trend is specifically visible in the luxury housing as many buyers are choosing bigger homes now, besides branded projects and well-planned communities that offer both comfort and long-term value. At DLF, India’s largest listed real estate developer, three years ago, NRIs contributed only around 5% of DLF’s sales.

The share has now climbed to over 30%, well above the industry average of 10-15% in major markets including NCR, MMR and Bengaluru. Aakash Ohri, Managing Director & Chief Business Officer, DLF says “Over the past three years, the contribution from NRI buyers has increased significantly for us.” He further added, “Today, NRIs are more connected to the brand than ever before. Much of this is driven by the trust they place in a developer like DLF that not only sells homes but also delivers well-managed products within large, integrated ecosystems.

Stable capital appreciation, strong service standards, ease of transactions, and the peace of mind that comes with professionally managed developments have all played an important role in strengthening this engagement.”What makes 2026 different from previous cycles is the sheer range of opportunities available. Commercial office leasing is expected to remain strong, with net absorption projected at nearly 55 million square feet.

Opportunities today extend well beyond residential property. The Cushman & Wakefield report highlights strong growth across commercial offices, logistics, industrial parks and data centres. Office leasing is expected to remain strong by the end of 2026, with data centre capacity projected to reach 1.7 GW.Investor interest in real estate also remains strong and this sentiment is very much visible as institutional investments crossed USD 7.5 billion in 2025, while the REIT market continued to grow. In this way, professionally managed real estate assets attracted more investors to participate. So, real estate in India is no longer just about owning a home, for NRIs. Rather, it is increasingly becoming a part of long-term financial planning, offering opportunities for capital growth, regular income and portfolio diversification.

The Indian real estate is finding a stronger place alongside other core investment assets, as the market evolves, and this is reflected in how NRIs are investing in real estate.