Indians’ overseas property remittances jump 64% to $529 million in 2025-26, as buyers eye rental income,…

MUMBAI: Remittances by Indian residents to buy property overseas surged 64% to $528.7 million in 2025-26, even as overall outward remittances declined marginally, pointing to growing interest in international real estate. A joint survey by Knight Frank India and IREX has found that 61% of respondents considering overseas property purchases are motivated by rental income and capital appreciation.

The report,Keys Beyond Borders, released on Thursday, found that overseas real estate now accounts for an average 13% of respondents' wealth portfolios, up from around 5% a decade ago. Domestic property accounts for another 32%, taking real estate's combined share to 45%.

The Reserve Bank of India's Liberalised Remittance Scheme (LRS) data show that property-related remittances rose from $322.82 million in 2024-25 to $528.7 million in 2025-26, despite an approximately 2% decline in total LRS outflows. Property purchases accounted for around 1.8% of total outward remittances under the scheme.

The survey identifies the UAE, Greece, Thailand, Portugal, Australia, the US, the UK, Bali in Indonesia, Canada and Malaysia among destinations being considered by Indian buyers. Residency ranks high alongside returns Rental income and capital appreciation are the leading stated reasons for buying, but residency and Golden Visa opportunities rank first among five broader factors influencing purchase decisions, the survey found.

Other considerations include portfolio diversification and currency hedging, business expansion and tax benefits, children's education and lifestyle improvement. Shishir Baijal, international partner, chairman and managing director of Knight Frank India, said overseas residential property was increasingly being considered as part of a broader wealth strategy.

He underlined that the findings map the intentions of resident Indians within the applicable LRS framework, rather than the entirety of overseas property investment by Indians. The survey is not representative of all Indian overseas property buyers.

It includes respondents and intermediaries answering on buyers' behalf, and records stated intentions, which may not translate into completed purchases. Apartments lead preferences As many as 85% of respondents plan to invest between $250,000 and $1 million in overseas property.

Apartments and condominiums are preferred by 69%, followed by villas and townhouses at 26%. Penthouses account for 4% of preferences and branded residences 1%.

About 76% are considering homes measuring 1,500-2,500 sq ft. Nearly half (49%) prefer properties of 2,000-2,500 sq ft, while 27% favour homes of 1,500-2,000 sq ft.

Business owners, traders and industrialists constitute the largest respondent group at 53%. Corporate executives and working professionals account for 30%, while first-generation entrepreneurs represent 11%.

The professional segment's share has risen from 7% a decade ago. About 76% of respondents are aged 35-50, while 84% already own property overseas.

Buyers need to factor in remittance rules For resident Indians, the LRS generally permits remittances of up to $250,000 per individual per financial year for permitted transactions, including eligible overseas property purchases. The limit is cumulative across permitted transactions, not a separate allowance for property.

Eligible family members may pool remittances for a property purchase only when applicable conditions, including co-ownership requirements, are met. This means the survey's $250,000-$1 million investment range should not be mistaken for the amount one individual can automatically remit in a single financial year.

Buyers must also comply with the Foreign Exchange Management Act (FEMA), Indian tax requirements and the destination country's property ownership and tax laws. Lavanya Anand, event director at IREX, said buyers were increasingly assessing overseas property for investment returns, global mobility and long-term family needs.

Georgia, Cyprus, Malta and Latvia are also attracting interest, partly because of residency programmes. However, buying property does not automatically confer residency or citizenship; eligibility depends on the rules of the relevant country and programme.

For prospective buyers, the headline returns need to be weighed against local taxes, maintenance costs, vacancy risks, currency fluctuations, restrictions on foreign ownership and resale prospects. A property's advertised price or expected rental yield alone may not determine whether an overseas purchase makes financial sense.

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