India, April 21 -- Should non-resident Indians invest in luxury real estate worth over Rs.20 crore? While such assets can offer strong returns, the real picture goes beyond headline gains. Hidden and recurring costs, such as high maintenance charges, sinking fund contributions, property taxes, insurance and periodic refurbishments, can significantly impact net returns, especially in premium developments.

For NRIs, a more prudent strategy is to adopt a long-term investment horizon, focus on high-quality assets in prime markets, stagger investments rather than committing large sums at once, and balance returns through a mix of rental income and capital appreciation. While currency cycles can be volatile, strong real estate fundamentals can...