Business owners, traders and industrialists constitute the largest respondent group at 53%.
Buyers need to factor in remittance rules
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. 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.
Lavanya Anand, event director at IREX, said buyers were increasingly assessing overseas property for investment returns, global mobility and long-term family needs. Buyers must also comply with the Foreign Exchange Management Act (FEMA), Indian tax requirements and the destination country’s property ownership and tax laws.
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. 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.
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. 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. He stressed that the findings map the intentions of resident Indians within the applicable LRS framework, rather than the entirety of overseas property investment by Indians.