Dubai flat, Greece villa: Financial returns drive Indians’ purchase of foreign property

Money remitted by Indian residents to purchase immovable property abroad rose nearly 64 per cent to $528.7 million in the financial year ending March 2026, from $322.82 million a year earlier, according to data cited in a joint report by Knight Frank India and IREX.

Financial returns, better lifestyle key drivers

The increase came even as overall outflows under India's Liberalised Remittance Scheme (LRS) declined by about 2 per cent over the same period.

A survey by the two organisations found that 61 per cent of respondents intend to buy overseas property for rental income and capital appreciation. The findings suggest that financial returns remain central to the appeal of international real estate, even as buyers weigh other benefits, including residency opportunities, lifestyle preferences and access to overseas markets.

Also read: India's rich look beyond cities for homes, developers follow

The report, titled Keys Beyond Borders, identifies the United Arab Emirates, Greece, Thailand, Portugal, Australia, the United States and the United Kingdom among the destinations attracting interest. Bali in Indonesia, Canada and Malaysia also feature.

Overseas property prominent in wealth portfolios

Overseas real estate accounts for 13 per cent of respondents' wealth portfolios, up from about 5 per cent a decade ago, according to the survey. Domestic property represents another 32 per cent, taking real estate's combined share to 45 per cent.

Fixed-income investments account for 20 per cent of respondents' wealth allocation, alternative assets for 18 per cent and equities for 17 per cent.

The findings point to a growing role for international property in the wealth strategies of respondents, although they do not establish whether the trend extends to Indian investors more broadly.

The survey found that 84 per cent of the respondents already own property abroad, while 16 per cent are prospective first-time buyers in international markets.

Also read/watch: Affordable housing is real casualty of India’s property boom: Niranjan Hiranandani

Residency and golden visa opportunities ranked first among the five key factors influencing purchase decisions. Portfolio diversification and currency hedging, business expansion and tax benefits, children's education, and lifestyle improvements also featured.

"Overseas residential property is increasingly being considered as part of a broader wealth and investment strategy by Indian buyers," said Shishir Baijal, chairman and managing director of Knight Frank India.

Business owners, traders lead

Business owners, traders and industrialists account for 53 per cent of respondents considering overseas property acquisitions, making them the largest group in the survey. Corporate executives and working professionals represent 30 per cent, while first-generation entrepreneurs account for 11 per cent.

The share of corporate executives and working professionals has risen from 7 per cent a decade ago, according to the report, suggesting that interest in international property extends beyond traditional business-led wealth.

Buyers are also concentrated in their prime earning years. About 76 per cent of respondents are between 35 and 50, a demographic likely to be balancing wealth creation, family requirements and longer-term financial planning.

Apartments safe choices

Most respondents are considering properties priced between $250,000 and $1 million, a range that covers 85 per cent of stated investment budgets.

Apartments and condominiums are the preferred property type for 69 per cent of respondents, compared with 26 per cent for villas and townhouses. Penthouses account for 4 per cent of preferences and branded residences for 1 per cent.

Also read: Beyond the Metros: India’s next 11 real estate hotspots

Property size preferences are similarly concentrated. About 76 per cent of respondents are looking at homes measuring between 1,500 and 2,500 square feet, including 49 per cent who favour properties measuring 2,000 to 2,500 square feet.

The figures suggest that respondents are largely focused on conventional residential assets rather than trophy properties or ultra-prime homes.

Regulatory limits remain a consideration

Property-related transfers accounted for about 1.8 per cent of total LRS outflows in FY2025-26, according to the report. While the increase in overseas property remittances is notable, the figures alone do not establish whether the trend will continue.

India's LRS generally permits resident individuals to remit up to $250,000 per financial year for permitted transactions, subject to applicable rules. The survey's investment budgets should therefore not be interpreted as permission for a single individual to remit the entire amount in one year.

Also read: Indians want bigger homes, but soaring prices impact purchases: Survey

Buyers must also account for destination-country ownership rules, taxes, maintenance costs, rental demand and currency movements. Property ownership does not automatically confer residency rights in every market.

The survey captures stated intentions rather than completed transactions. Its respondents include buyers and intermediaries answering on their behalf, and the sample is not designed to represent all Indian residents considering overseas property.

For prospective investors, the appeal of international real estate ultimately rests on whether rental income and potential capital appreciation justify the costs and risks of owning property abroad.