A Dubai-based NRI has sparked an online discussion after sharing why he has decided to stop investing in Indian real estate despite already owning two apartments in Bengaluru and Hyderabad. In a Reddit post that quickly went viral, the man said his properties may appear profitable “on paper,” but the reality of managing them from abroad has been far more frustrating than expected.
The NRI explained that both homes are currently rented out and have appreciated in value. However, he claimed the overall experience has been filled with low rental returns, tax complications, paperwork hassles and currency-related losses.
“Bought one in Hyderabad. One in Bangalore. Both tenanted. Both ‘doing well on paper,'” he wrote, before adding, “Here's the honest math nobody told me before I bought.”
‘The Yield Is Embarrassing'
According to the post, the rental income earned from the two homes has been disappointing after deducting maintenance expenses, society charges and property tax.
“Net rental yield after maintenance, society charges and property tax is 2 to 3%. My UAE savings account pays 4%,” he said.
The user also claimed that many tenants avoid renting homes owned by NRIs because of the tax rules involved. Tenants are required to deduct 31.2% TDS on rent paid to NRI landlords and handle the filing process themselves.
“Most have no clue how to do this. Half just refuse to rent from you entirely. Found this out the hard way,” the post read.
Paperwork, Currency Loss And Exit Trouble
The homeowner further described the home loan process as exhausting, saying it involved endless paperwork, notarised power of attorney documents, overseas bank statements and employment verification.
“The mortgage paperwork is a joke. Back and forth for months… By the time it's done you've aged 5 years,” he wrote.
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He also pointed to the weakening rupee as another major concern. “USD/INR was 83 two years ago. It's 95 today. That's 14% gone before you've even done anything,” he added.
Calling the selling process a “nightmare,” the NRI listed multiple formalities including NRO accounts, Form 15CA, Form 15CB, CA certificates, capital gains tax and forex conversion losses.
“Property won on paper. But for the illiquidity, the headache, the currency drag and the exit pain? Just not worth it for me. Won't be doing a third,” he concluded.
The post triggered strong reactions online, with several users debating whether NRI investments are contributing to rising property prices in Indian cities.
Check Out The Viral Post Here:
I'm an NRI in Dubai. I own 2 properties in India. Won't be buying a third. Here's why.
by u/alphatrader_99 in indianrealestate
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