U.S. Real Estate in 2025: Reliable, But Slowing Down
- High entry costs: The average home price in the U.S. is now over $420,000 (Redfin, Q1 2025), making expansion capital-intensive.
- Lower rental yields: Net returns on residential properties often fall between 2–3%, especially after taxes and maintenance.
- Flat appreciation: Major metros like San Francisco and New York have seen prices flatten — or even dip — over the last year.
- Macroeconomic headwinds: Interest rate uncertainty and inflation have made long-term planning harder for property investors.
Why Investors Are Looking Toward India in 2025
1. Strong fundamentals
Cities like Bengaluru, Hyderabad, and Pune are seeing sustained demand, fueled by young, upwardly mobile populations and rapid urbanization.
2. Currency advantage
If you’re investing in INR using USD, EUR, or GBP, you benefit from exchange rate leverage — acquiring high-quality real estate at a relative discount.
3. Healthy returns
Gross rental yields in Bengaluru average 5%–8%, with long-term capital appreciation projected between 10%–25% in fast-developing corridors (ANAROCK, 2025).
4. Regulatory improvements
The RERA Act has made India’s real estate market far more transparent, with mandatory project registration, buyer protections, and legal accountability.
Spotlight: Bengaluru Real Estate
- 7,000+ tech startups and major global R&D centers
- Expanding infrastructure: Metro, Outer Ring Road, new expressways
- Strong rental demand in tech zones like Whitefield, Hebbal, Sarjapur Road, and Electronic City
- Multiple micro-markets offering entry points for both mid-ticket and premium investors
U.S. vs. Bengaluru: Side-by-Side Comparison
Criteria | U.S. Real Estate | Bengaluru Real Estate |
Entry Price | $300K – $1M+ | $40K – $150K |
Rental Yields | 2% – 3% (net) | 6% – 8% (gross) |
Appreciation | 3% – 5% annual | 10% – 25% in growth areas |
Volatility | Moderate to high | Low to moderate |
Regulatory Clarity | Mature | RERA-enforced compliance |
Currency Advantage | None | Favorable for USD holders |
How to Invest in India Real Estate from Abroad
- Use NRE or NRO accounts for legal and financial clarity
- Only invest in RERA-approved projects to avoid fraud and delays
- Focus on high-demand micro-markets with proven track records
- Work with tax consultants in both countries to streamline repatriation
- Engage a vetted local partner to handle paperwork, site visits, and resale or rental management
A Global Diversification Strategy That Makes Sense
- Exposure to Asia’s fastest-growing economy
- An inflation-resistant, tangible asset class
- Currency diversification
- Participation in one of the world’s largest real estate transformations