Knight Frank explains how Indian buyers are approaching overseas property investments

Rental income and capital appreciation are the primary reasons for 61% of surveyed Indian buyers considering overseas residential property, according to a joint report by Knight Frank India and IREX.

The report, Keys Beyond Borders, found that overseas real estate accounts for 13% of respondents’ total wealth allocation, up from around 5% a decade ago. Domestic real estate accounts for another 32%, taking the combined allocation to property to 45%.

How much are Indian buyers planning to invest?

Around 85% of respondents plan to invest between $250,000 and $1 million in overseas property. Apartments and condominiums are the preferred choice for 69%, followed by villas and townhouses at 26%.

Business owners, traders and industrialists account for 53% of respondents, while corporate executives and working professionals make up 30%. Further, 76% of respondents are aged between 35 and 50.

The UAE, Greece, Thailand, Portugal, Australia, the US, the UK, Canada, Malaysia and Bali in Indonesia feature among the preferred destinations.

What is driving overseas property purchases?

Residency and Golden Visa opportunities ranked first among the factors influencing purchase decisions. Other considerations include portfolio diversification, currency hedging, business expansion, tax benefits, children’s education and lifestyle preferences.

The survey found that 84% of respondents already own property overseas, while 16% are prospective first-time buyers.

Overseas property remittances rise 64% in FY26

Remittances by Indian residents for purchasing immovable property abroad rose 64% year-on-year to $528.70 million in FY2025-26, from $322.82 million in the previous financial year, according to the report.

The increase came even as total outward remittances under the Reserve Bank of India’s Liberalised Remittance Scheme (LRS) declined by around 2%. Property purchases accounted for approximately 1.8% of total LRS outflows.

Investors considering property abroad need to assess local taxes, maintenance costs, rental demand, currency fluctuations and resale prospects, alongside ownership rules and applicable Indian and destination-country regulations.

The survey reflects stated purchase intentions among its respondents and is not representative of all Indian investors.