Mumbai: Rental income and capital appreciation are emerging as key drivers of overseas residential property investment among Indian buyers, with 61% of respondents intending to purchase international property for these financial objectives, according to a joint survey by Knight Frank India and IREX.
The report, Keys Beyond Borders, highlights the evolving investment preferences of resident Indians exploring international real estate markets. Overseas property now accounts for 13% of respondents’ total wealth allocation, compared with approximately 5% a decade ago, indicating a growing role for international real estate in their wealth strategies.
The survey identifies the UAE, Greece, Thailand, Portugal, Australia, the United States, the United Kingdom, Bali in Indonesia, Canada and Malaysia among the destinations attracting interest from Indian buyers. Residency opportunities, portfolio diversification, lifestyle preferences and long-term financial objectives also influence their purchasing decisions.
Overseas Real Estate Gains Share in Wealth Portfolios
Real estate represents an average of 45% of respondents’ total wealth allocation, comprising 32% in domestic property and 13% in overseas property. The survey further finds that 84% of respondents already own property overseas, while 16% are prospective first-time buyers in international markets.
Residency and Golden Visa opportunities rank first among the five key factors influencing overseas property purchase decisions. Other considerations include portfolio diversification and currency hedging, business expansion and tax benefits, children’s education and lifestyle improvement.
Commenting on the findings, Shishir Baijal, International Partner, Chairman and Managing Director of Knight Frank India, said overseas residential property is increasingly being considered as part of a broader wealth and investment strategy by Indian buyers. He noted that purchasing decisions are shaped not only by rental income and capital appreciation but also by residency opportunities, lifestyle preferences and asset diversification across markets.
Baijal added that the report captures the intentions of resident Indian individuals considering overseas residential purchases within the framework of the Liberalised Remittance Scheme (LRS), rather than representing the entire overseas property investment market among Indians.
85% Plan to Invest Between USD 250,000 and USD 1 Million
The survey indicates that 85% of respondents plan to invest between USD 250,000 and USD 1 million in overseas property. Apartments and condominiums remain the preferred choice, selected by 69% of respondents, followed by villas and townhouses at 26%. Penthouses account for 4% of preferences, while branded residences represent 1%.
Property size is another consideration, with 76% of respondents preferring homes measuring between 1,500 and 2,500 square feet. Nearly 49% favour properties in the 2,000–2,500 square feet category, while 27% prefer homes measuring 1,500–2,000 square feet.
Business owners, traders and industrialists form the largest respondent group, accounting for 53% of those considering overseas property acquisitions. Corporate executives and working professionals represent 30%, while first-generation entrepreneurs account for 11%. The share of corporate executives and working professionals has risen from 7% a decade ago, suggesting that interest in international property markets extends beyond traditional business-led investor groups.
Additionally, 76% of respondents fall within the 35–50 age group, highlighting the relevance of wealth creation, portfolio diversification and longer-term financial planning among working-age buyers.
Overseas Property Remittances Rise 64%
Providing further context to the survey findings, property-related remittances by Indian residents for purchasing immovable property abroad increased 64% year-on-year to USD 528.70 million in FY2025–26, compared with USD 322.82 million in FY2024–25. This increase occurred even as overall outflows under the Liberalised Remittance Scheme declined by approximately 2% during the same period.
Property-related remittances accounted for around 1.8% of total LRS outflows. The survey also identifies Georgia, Cyprus, Malta and Latvia among other markets attracting interest from prospective buyers.
Lavanya Anand, Event Director at IREX, said the growing interest in overseas real estate reflects a more considered approach to global property ownership, where investment potential, residency options and lifestyle aspirations intersect. She emphasised the importance of understanding market-specific opportunities, regulatory frameworks and ownership considerations before making an overseas property investment.
The report builds on earlier research conducted by Knight Frank India and IREX in 2017, examining how Indian buyers’ investment motivations and preferences have evolved over time.
The findings represent stated purchase intentions among the survey respondents and are not a measure of completed transactions or a representative estimate of all Indian overseas property buyers. The report focuses on selected destinations and the core investible market, excluding trophy and ultra-prime assets. Overseas property funding must comply with applicable RBI regulations, FEMA provisions and tax requirements in India and the destination country.