Knight Frank India–IREX Report Highlights Growing Interest in Global Real Estate for Rental Income, Capital Appreciation and Residency Opportunities
By The Realty Times | Real Estate News Services
Mumbai: Overseas real
estate is becoming an increasingly important component of Indian investors’
wealth portfolios, with international property now accounting for 13% of
respondents’ wealth allocation, compared with approximately 5% a decade ago.
The findings come from Keys Beyond Borders, a joint report by Knight
Frank India and IREX released in October 2026.
The report highlights a growing interest among Indian
investors in international property markets as they seek rental income,
long-term capital appreciation, portfolio diversification and opportunities to
establish residency abroad.
The trend also reflects a broader shift in investment
strategies, with some affluent Indians looking beyond domestic property markets
to diversify their assets geographically.
Real Estate Accounts for 45% of Wealth
Allocation
According to the report, real estate represents 45% of
the surveyed respondents’ total wealth allocation. Domestic property accounts
for 32%, while overseas property contributes the remaining 13%.
The growing share of international property suggests
that overseas real estate is increasingly being considered as part of a broader
wealth-management strategy rather than simply as a holiday home or lifestyle
purchase.
The survey also found that 84% of respondents already
own property overseas, while 16% are considering their first international
property purchase. However, the findings reflect the survey sample and should
not be interpreted as representative of all Indian investors.
Rental Income and Capital Appreciation
Drive Demand
Financial returns are among the key motivations behind
overseas property investments. The survey found that 61% of respondents intend
to purchase international property to generate rental income and benefit from
potential capital appreciation.
Residency opportunities, including Golden Visa
programmes where available, also play an important role in purchase decisions.
Other considerations include portfolio diversification, protection against
currency movements, business expansion, tax considerations, children's
education and lifestyle preferences.
These motivations indicate that buyers are evaluating
overseas property for both financial and personal reasons.
However, rental yields and capital appreciation vary
significantly between markets. Investors must consider local taxes, maintenance
expenses, vacancy risks, currency fluctuations and resale conditions before
committing funds.
Which Countries Are Attracting Indian
Property Buyers?
The report identifies several international
destinations attracting interest from Indian buyers, including:
- United
Arab Emirates: A prominent destination for
residential property investment and rental-income opportunities.
- Greece
and Portugal: Markets attracting attention from
buyers interested in European property and potential residency options.
- Thailand
and Bali, Indonesia: Destinations appealing to
investors seeking lifestyle properties and holiday-home opportunities.
- United
States, United Kingdom, Australia and Canada:
Established property markets attracting buyers for investment, family and
lifestyle considerations.
- Malaysia:
Another destination being considered by Indian investors exploring
international residential property.
The report also identifies markets such as Georgia,
Cyprus, Malta and Latvia as destinations attracting interest, partly because of
their residency programmes. Property ownership does not automatically guarantee
residency or citizenship; eligibility depends on each country's applicable
rules.
Apartments Remain the Preferred Property
Type
Apartments and condominiums are the most popular
property choices among respondents considering overseas purchases.
The survey found that 69% prefer apartments or
condominiums, while 26% favour villas and townhouses. Penthouses account for 4%
of preferences, and branded residences account for 1%.
Investment budgets are also concentrated within a
specific range. Around 85% of respondents plan to invest between $250,000 and
$1 million in overseas property.
These preferences indicate that surveyed buyers are
primarily considering conventional residential properties rather than
exclusively focusing on ultra-luxury or trophy assets.
Working Professionals Join the Overseas
Property Market
Business owners, traders and industrialists account
for 53% of respondents considering overseas property purchases. Corporate
executives and working professionals represent 30%, while first-generation
entrepreneurs account for 11%.
The share of corporate executives and working
professionals has increased from 7% a decade ago, according to the survey.
Additionally, 76% of respondents are between 35 and 50 years old.
This changing buyer profile suggests that interest in
international real estate extends beyond traditional business-led wealth and is
also attracting salaried professionals seeking long-term investment and family
opportunities.
Regulatory Compliance Remains Essential
Indian residents planning to purchase property abroad
must understand the regulations governing overseas remittances and property
ownership.
The Liberalised Remittance Scheme generally permits
resident individuals to remit up to $250,000 per financial year for permitted
transactions, subject to applicable conditions. Buyers must also comply with
the Foreign Exchange Management Act (FEMA), Indian tax requirements and the
laws of the destination country.
The survey's stated investment budgets should not be
interpreted as permission for an individual to remit the entire amount in a
single financial year.
Investors should carefully assess ownership rules,
rental regulations, tax liabilities, maintenance costs, currency risks and the
legal process for reselling property before making a decision.
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