Source : INDIA TODAY NEWS
More Indians are looking at property overseas as a way to earn rental income and grow their wealth. A survey by Knight Frank India and IREX found that 61% of respondents see rental earnings and rising property prices as key reasons to invest abroad. Meanwhile, the money sent from India to buy overseas property has risen by 64%.
The report also found that 85% of respondents plan to invest between $250,000 and $1 million. Apartments and condominiums remain the most popular choices among those considering property purchases overseas.
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MONEY SENT TO BUY PROPERTY ABROAD RISES 64%
According to the report, ‘Keys Beyond Borders’, the money sent by Indian residents to purchase overseas real estate rose 64% year-on-year to $528.7 million in the financial year 2025-26. The amount stood at $322.82 million in 2024-25.
The increase came even as total money sent abroad under the Liberalised Remittance Scheme (LRS) fell by around 2%. Funds sent to buy property overseas accounted for about 1.8% of total LRS outflows.
Although the amount has increased, property purchases still account for a small share of the total money sent abroad. However, the survey points to growing interest among respondents in international real estate.
OVERSEAS PROPERTY TAKES A BIGGER SHARE OF WEALTH
Real estate accounts for an average of 45% of the total wealth of respondents surveyed. Domestic property makes up 32%, while overseas property accounts for 13%.
Around a decade ago, overseas real estate made up about 5% of respondents’ wealth portfolios.
The report found that 84% of respondents already own property abroad, while the remaining 16% are considering buying overseas property for the first time.
This suggests that foreign property is not just being considered as a place to live or spend holidays. It is also becoming part of investors’ efforts to spread their investments across different assets.
WHERE ARE INDIANS LOOKING TO BUY PROPERTY?
Indian buyers are considering property markets across several countries and regions. These include the United Arab Emirates (UAE), Greece, Thailand, Portugal, Australia, the United States, the United Kingdom, Bali in Indonesia, Canada and Malaysia.
Rental income and the possibility of property prices rising are among the reasons for investing overseas. Residency options and Golden Visa opportunities also influence buying decisions.
Other factors include diversifying investment portfolios, protecting against currency movements, expanding businesses, tax benefits, children’s education and the prospect of a better lifestyle.
85% PLAN TO INVEST BETWEEN $250,000 AND $1 MILLION
The survey found that 85% of respondents plan to invest between $250,000 and $1 million in overseas property.
Apartments and condominiums are the most popular choices, preferred by 69% of respondents. Villas and townhouses come next, with 26% showing a preference for these properties. Penthouses are favoured by 4%, while branded residences account for 1%.
The survey also highlights the size of homes buyers are considering. Around 76% of respondents are looking at properties measuring between 1,500 and 2,500 square feet.
Of these, 49% prefer homes measuring 2,000 to 2,500 square feet, while 27% are considering properties ranging from 1,500 to 2,000 square feet.
WHO IS INTERESTED IN BUYING PROPERTY OVERSEAS?
Business owners, traders and industrialists account for 53% of respondents interested in overseas property. Corporate executives and working professionals make up 30%, while first-generation entrepreneurs account for 11%.
The share of corporate executives and working professionals has risen from 7% around a decade ago to 30% now, according to the report.
The survey also found that 76% of respondents are aged between 35 and 50. This group is at a stage of life when building wealth, diversifying investments and planning finances for the long term can be important considerations.
RULES TO KNOW BEFORE BUYING PROPERTY ABROAD
Indians planning to buy property overseas need to understand the rules governing such investments. According to the report, money sent abroad for investment must comply with the Reserve Bank of India’s Liberalised Remittance Scheme (LRS), the Foreign Exchange Management Act (FEMA) and the applicable tax rules in India and the destination country.
The survey figures reflect respondents’ plans and intentions. They do not mean that everyone considering an overseas property purchase will eventually buy one.
The report also clarifies that its sample was not designed to represent the overseas property investments of all Indian residents.
Overall, rental income and the possibility of property prices rising are key reasons why respondents are considering overseas real estate. Residency options, lifestyle choices and the need to diversify investments also play a role. Before investing, buyers need to check property prices, expected rental income, taxes, ownership rights and the rules that apply in their chosen market.
– Ends
SOURCE :- TIMES OF INDIA
