Indian Buyers Look Beyond Borders as Overseas Property Investment Gains Momentum: Knight Frank Report
The report, based on a survey conducted during August and September 2026, received more than 100 responses from high-intent resident Indian buyers and property-market intermediaries. Its findings indicate a shift in the way overseas property is viewed: rather than being driven primarily by lifestyle aspirations, purchases are increasingly influenced by financial objectives, international mobility and long-term family requirements.
The survey found that overseas property accounts for an average of 13% of respondents’ wealth, compared with approximately 5% a decade ago. Real estate as a whole represents around 45% of their wealth allocation. Notably, 84% of respondents already own property abroad, indicating that the findings largely reflect the preferences and experiences of existing overseas property owners.
Overseas Property Becomes Part of Wealth Diversification
India’s expanding economy, growing entrepreneurial ecosystem and increasing international business connections have created new opportunities for wealth creation. Business ownership, professional services, financial markets and technology-related enterprises are among the channels contributing to the growth of private wealth.
As financial capacity expands, some investors are exploring residential assets outside India to spread their investments across different geographies and currencies. Overseas property can also provide rental income, potential capital appreciation and a base for business, education or family requirements.
The report identifies business owners, traders and industrialists, alongside first-generation entrepreneurs and start-up founders, as important groups within the overseas property buyer segment. Business owners and first-generation entrepreneurs account for 64% of respondents, while corporate executives and professionals represent 30%.
Age is another defining characteristic. Approximately 76% of respondents fall within the 35–50 age group, a period often associated with business expansion, active wealth accumulation and decisions concerning children’s education and family mobility.
These findings suggest that overseas residential investment is becoming relevant to buyers who view property not simply as a place to live, but as an asset serving multiple financial and personal objectives.
Residency and Investment Returns Drive Purchase Decisions
One of the most significant findings in the report is the changing motivation behind overseas property purchases.
Residency and access to residency-linked investment programmes now rank as the leading purchase motivation, having ranked last among six attraction factors in the 2017 survey. Portfolio diversification and currency hedging occupy the second position.
The shift indicates that buyers are increasingly considering how a property purchase may support broader financial and mobility objectives. Residency opportunities, where available under the applicable programme rules, can influence destination selection alongside investment potential and family requirements.
Lifestyle remains a consideration, but its position has declined compared with the previous survey. According to the report, rising affluence, greater international exposure and wider lifestyle choices within India may have reduced the novelty associated with living abroad.
Investment returns also remain central to purchase decisions. Approximately 61% of respondents plan to acquire property for rental income and capital growth. By comparison, 19% intend to purchase a primary or secondary residence, while 10% are looking for a holiday home.
The figures underline the importance of income generation and asset appreciation in the overseas housing market. However, intended returns depend on acquisition costs, rental demand, taxation, ongoing expenses and future market conditions.
UAE, Greece and Thailand Among Preferred Destinations
The United Arab Emirates (UAE), Greece, Thailand, Portugal and Australia are the five destinations profiled in the report, reflecting their popularity among surveyed buyers within the study’s core investment segment.
Other markets appearing among respondents’ preferences include the United States, the United Kingdom, Indonesia, particularly Bali, Canada and Malaysia. Destination selection varies according to residency opportunities, business connections, education requirements, currency exposure and the intended use of the property.
The UAE leads the destination preferences identified in the report. Its appeal is connected to business activity, international connectivity and the potential role of property within a broader investment or residency strategy.
Greece attracts buyers interested in residency opportunities and access to Europe. Thailand is associated with second-home and leisure demand, while Portugal appeals to investors seeking portfolio diversification, currency exposure and a European base. Australia benefits from established education and family connections.
The report also highlights an important distinction between property ownership and immigration rights. Buying a property does not automatically provide residency or citizenship. Eligibility depends on the destination’s prevailing regulations, qualifying investment requirements and the applicant’s circumstances.
Portugal’s continued presence among preferred destinations is particularly notable because property investment was removed from its Golden Visa programme. Its appeal indicates that overseas demand can continue even when residency-linked property routes are unavailable, provided other factors remain attractive.
Buyers Prefer Apartments and Mid-Sized Homes
The survey points towards a preference for practical residential formats rather than exclusively large or trophy properties.
Apartments and condominiums account for 69% of respondents’ property-format preferences. Villas and townhouses represent 26%, reflecting demand from buyers seeking additional space, privacy or second-home options.
The preferred size range is also concentrated in the middle of the market. Approximately 76% of respondents seek properties measuring between 1,500 and 2,500 square feet.
Apartments can offer a relatively accessible entry point into established international residential markets, alongside potentially lower maintenance requirements and rental opportunities in locations with suitable tenant demand.
For investors, the choice of property format is closely linked to the intended use. A unit purchased for rental income may require a different location, layout and management arrangement from a property intended for personal use or long-term family occupation.
The survey’s budget distribution reinforces this focus on the premium but investible segment. Approximately 85% of respondents plan to spend between US$250,000 and US$1 million, with 54% budgeting US$250,000–US$500,000 and 31% planning to spend US$500,000–US$1 million.
These figures represent stated purchase intentions rather than completed transactions. They nevertheless show that overseas property interest extends beyond ultra-luxury acquisitions and includes buyers seeking residential assets within defined investment budgets.
Rupee Depreciation Adds Another Dimension to Returns
Currency movements can significantly influence the cost and performance of overseas property investments made by Indian residents.
When the rupee weakens against the currency in which a property is priced, an Indian buyer needs more rupees to purchase the same asset. Conversely, rupee depreciation can increase the rupee value of an existing overseas property when its local-currency value is maintained or rises.
Knight Frank’s analysis compares property-price changes and currency movements across the UAE, Greece, Thailand, Portugal and Australia over a five-year period. The report estimates cumulative rupee gains ranging from approximately 47.10% in Thailand to 129.95% in the UAE across the five markets reviewed.
These estimates exclude rental income, ownership costs and taxes. They should therefore not be interpreted as guaranteed returns or as a direct comparison of net investment performance.
For a prospective buyer, the exchange rate at the time of purchase, future currency movements and the timing of any eventual sale can materially affect the final outcome. Local property-price appreciation alone does not determine the return earned by an Indian investor.
Remittance Rules and Taxation Require Careful Planning
Funding an overseas property purchase involves more than arranging the purchase price. Indian residents must consider the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), foreign exchange conversion, applicable tax requirements and the rules governing ownership in the destination country.
The report states that the annual LRS allowance is US$250,000 per resident individual per financial year, a limit that has remained unchanged since 2015. Other permitted remittances made during the same financial year can reduce the amount available for a property purchase.
The rupee equivalent of the allowance has increased as the currency has depreciated. According to the report, the annual average exchange rate rose from ₹65.46 per US dollar in FY2015–16 to ₹88.31 in FY2025–26. Consequently, the rupee equivalent of the US$250,000 allowance increased from approximately ₹1.64 crore to ₹2.21 crore.
Larger purchases may require careful payment scheduling across financial years or eligible family co-ownership arrangements, subject to applicable regulations. Buyers must also account for transaction taxes, registration charges, legal expenses, property management costs and recurring levies.
Taxation can arise in both the country where the property is situated and India. Rental income, capital gains, foreign-asset disclosures and eligibility for foreign tax credits require consideration under the applicable rules. Succession planning is another important issue because inheritance and estate-tax provisions differ across jurisdictions.
The report emphasises that an overseas property’s final return depends on the full cost of ownership, not just the purchase price or the headline appreciation in market value. Buyers should obtain jurisdiction-specific legal and tax advice before committing capital.
Overseas Property Remittances Reach Record Levels
The growing interest in international property is also reflected in remittance data cited in the report.
Transfers for overseas property purchases under the LRS reached US$528.70 million in FY2025–26, rising approximately 64% from US$322.82 million in the previous financial year. The amount represented 1.8% of total LRS outflows, compared with 1.1% in FY2024–25.
This increase occurred even as total LRS outflows declined by approximately 2% during the year, highlighting the stronger growth in property-related remittances relative to the wider remittance pool.
The report also notes that overall outward remittances under the LRS rose from US$4.64 billion in FY2015–16 to US$28.98 billion in FY2025–26. Travel accounted for approximately 57% of LRS outflows in FY2025–26, while overseas equity and debt investments reached US$2.65 billion.
Together, these trends illustrate how international spending and investment are becoming more prominent within the financial decisions of Indian households. Property remains one component of this broader cross-border movement of capital.
Outlook: Demand Will Depend on Returns, Residency and Family Needs
The findings suggest that overseas residential property is becoming a more established consideration for affluent Indian buyers. Its appeal combines investment diversification, potential rental income, currency exposure, residency opportunities and practical requirements related to education, business and family life.
However, the report does not suggest that every international market offers the same benefits. Destination preferences differ, regulations can change and the financial outcome of a purchase depends on local market conditions, exchange rates, ownership expenses and taxation.
For the overseas property market, the ability to offer a credible investment case alongside clear ownership rules and predictable costs will remain important in attracting Indian buyers.
For investors, the central question is no longer simply where a property can be purchased, but whether the asset fits their financial objectives, funding capacity and long-term plans.
Source: Keys Beyond Borders 2026, Knight Frank India and IREX. Survey conducted in August–September 2026. Findings reflect the surveyed high-intent buyer segment and are not representative of all Indian overseas property buyers. The report provides general information and does not constitute legal, tax, financial or investment advice.
