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Indian Investors Increasingly Target Overseas Property for Rental Income, Capital Gains: Knight Frank Report

· · 3 min read

A recent Knight Frank survey reveals 61% of Indian investors plan to buy overseas property primarily for rental income and capital appreciation. This marks a significant shift, with international real estate now accounting for 13% of their total wealth.

A new report by Knight Frank India and IREX reveals a significant shift in investment strategies among high-net-worth Indian individuals. Released on October 22, 2026, the "Keys Beyond Borders" survey indicates that 61% of Indian investors are specifically targeting overseas real estate with the primary goals of generating rental income and achieving capital appreciation.

This growing interest highlights the increasing role of international property markets in wealth creation for Indian residents. The survey found that overseas real estate now constitutes 13% of respondents' total wealth allocation, a substantial increase from approximately 5% a decade ago. Combined with domestic real estate, property investments now account for 45% of their total assets, surpassing fixed-income assets (20%), alternative assets (18%), and equities (17%).

Key Motivations for Global Property Ventures

The report details various factors driving this trend. A significant 84% of respondents already possess international property, while 16% are first-time prospective buyers. Beyond financial returns, residency opportunities, including coveted Golden Visa programs, are a leading influence on purchase decisions. Other motivations encompass portfolio diversification, currency hedging, business expansion, seeking tax benefits, facilitating children's education abroad, and overall lifestyle improvement.

Preferred destinations for these investments are diverse, spanning multiple continents. The United Arab Emirates (UAE), Greece, Thailand, Portugal, Australia, the United States, the United Kingdom, Bali in Indonesia, Canada, and Malaysia are among the most sought-after locations. Additionally, emerging interest is noted in countries like Georgia, Cyprus, Malta, and Latvia.

Investment Scale and Property Preferences

The survey indicates a clear investment bracket, with 85% of respondents planning to allocate between $250,000 and $1 million towards their overseas property acquisitions. When it comes to property types, apartments and condominiums are the dominant choice, favored by 69% of investors. Villas and townhouses follow at 26%, while penthouses and branded residences account for smaller shares of 4% and 1%, respectively.

Property size is also a crucial consideration. A majority, 76% of respondents, prefer homes measuring between 1,500 and 2,500 square feet. Within this range, 49% specifically opt for properties sized 2,000–2,500 square feet, and 27% choose those between 1,500 and 2,000 square feet.

Investor Profile and Remittance Growth

The demographic profile of these overseas property investors is largely composed of business owners, traders, and industrialists, who collectively represent 53% of respondents. Corporate executives and working professionals make up 30%, a notable increase from 7% a decade prior. First-generation entrepreneurs account for 11%. Furthermore, a significant 76% of respondents are aged between 35 and 50 years, indicating a younger, dynamic investor base.

This surge in international property investment is also reflected in remittance data. Property-related remittances by Indian residents saw a substantial 64% year-on-year increase, reaching $528.70 million in FY2025-26, up from $322.82 million in FY2024-25. These remittances constituted approximately 1.8% of total outflows under the Liberalised Remittance Scheme (LRS), even as overall LRS outflows experienced a slight decline of around 2%.

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