Indian Realty Faces Uncertainty as Trump Slaps $100,000 H-1B Fee

A sweeping new visa policy from the White House has cast a long shadow on India’s property market. US President Donald Trump, in a proclamation signed on September 21, 2025, announced a steep $100,000 (Rs. 88.1 lakh) annual fee on most H-1B visa petitions.

With Indians accounting for 71 percent of approvals in FY2024, the measure could dramatically reshape both residential and commercial real estate dynamics across India’s major metropolitan centres.

Housing demand faces turbulence
For over a decade, NRI investments and remittance-backed demand have been a silent engine driving India’s housing markets, particularly in IT-driven hubs like Bengaluru, Hyderabad, Pune, and Gurugram. Developers catering to mid-to-premium housing projects have benefitted significantly from this steady inflow of funds.

The sudden increase in H-1B visa costs is expected to alter this equation. Analysts believe that overseas assignments often critical to the career and financial trajectories of Indian tech professionals may now be delayed or reconsidered. Families that previously looked to upgrade to premium housing may postpone or scale back their decisions, resulting in slower absorption of mid-to-high-end projects.

Luxury housing, already a niche and volatile segment, could see further softening. “The higher fee directly impacts the disposable income and confidence of professionals eyeing overseas opportunities. This uncertainty will likely spill over into real estate demand back home,” a senior real estate consultant noted.

Remittance link under pressure
India has long been the world’s top recipient of remittances, with inflows topping $125 billion in 2023, according to the World Bank. A significant portion of these remittances finds its way into property investments, particularly in high-growth urban centres. By raising the cost of working in the United States, the new visa policy risks cooling this inflow.

Developers point out that second or third home purchases, often funded by overseas income, could be deferred, leading to weaker demand in top-end residential projects. “Remittance-driven sentiment is an undercurrent in Indian real estate. Anything that disturbs the stability of outward migration will have a cascading effect on property investments,” said an industry insider.

Commercial real estate gains momentum
While residential markets brace for headwinds, commercial real estate could be the surprise beneficiary of Trump’s policy shift. With visa costs escalating sharply, American firms may choose to rebalance their global workforce strategy by expanding operations in India instead of relocating talent to the US.

This recalibration is expected to accelerate the already robust offshoring model. According to CBRE, Global Capability Centres (GCCs) currently account for 35–40 percent of office space absorption in Bengaluru, Hyderabad, and Pune. That share is projected to rise meaningfully by 2026 as multinationals consolidate back-office and R&D operations within India’s cost-competitive environment.

“Higher visa costs tilt the economics of global staffing towards offshore expansion. Indian metros stand to gain from enhanced office leasing activity, especially in tech-heavy corridors,” observed a senior CBRE executive.

Reshaping the property landscape
The $100,000 fee underscores the interconnectedness of global policy and local markets. While the move may dampen luxury and premium housing demand in the short term, the mid-segment residential market could remain resilient, supported by domestic demand and urbanisation trends. Rental ecosystems in IT corridors may also see stable or rising demand as professionals delay overseas moves and remain rooted in India.

On the commercial front, the trajectory appears more favourable. Increased GCC activity, deeper talent pools, and cost advantages position Indian cities strongly to absorb the next wave of corporate expansion. This shift could partly offset the drag in housing markets and lend balance to the overall sector.

Outlook
The Trump administration’s visa fee move marks a turning point for India’s real estate. Residential developers may need to recalibrate pricing and offerings to account for weaker NRI-driven demand, while commercial developers could see rising leasing traction.

Ultimately, the policy highlights a broader truth: India’s property markets are no longer insulated from global developments. As the visa fee reshapes migration and corporate strategies, India’s skylines both residential and commercial are set for a period of adjustment and opportunity.