FOREIGN PROPERTY: A NEW ASSET CLASS FOR INDIANS

India Sotheby’s International Realty points out a sharp rise in overseas property investment by Indians, from around 10-11% to a significant 22% in 2025.

The Knight Frank Wealth Report 2025 report suggests that Indian HNIs are investing 22-25% of their total wealth in in foreign real estate, mostly UAE or the UK.

The shift is clear - global properties are no longer just aspirational, but have become a strategic investment move by rich Indians to protect and grow wealth in uncertain times. For instance, a home in London or New York is more than an address; it offers a combination of investment potential and a stable market. An apartment in Singapore or Hong Kong provides attractive rental yields and long term wealth diversification, while a villa in Dubai is more than a luxury—it is a tax-efficient, long-term investment.

$1 million can buy 99 square meters of prime property in Mumbai. The same amount is worth 32 square meters in Singapore, 34 square meters in London and New York, 44 square meters in Shanghai and 78 square meters in Dubai.


The Push & Pull Factors

In 2025, Indian luxury real estate has been on a record-breaking wave, though the appeal of international properties has remained consistent. And the reason is the various ‘Pull’ factors.

Portfolio Diversification: The primary focus of Indians investing in real estate abroad is risk mitigation by spreading their assets globally to hedge against domestic market volatility, currency fluctuations and economic uncertainties.

Superior Financial Returns: Capital appreciation in prime global cities due to robust legal frameworks and economic stability, remains strong, delivering consistent long-term returns and deep liquidity.

Lifestyle Benefits: Owning property abroad apart opens doors to international mobility, facilitating easier international travel, provides a global footprint to operate business and properties near international universities are particularly favoured for children education and job opportunities.

Citizenship Programs: The Golden Visa or residency by-investment programs linked to property purchases are a major draw for Indians for the reason of lifestyle for family and long-term residency pathway.

Apart from the attractiveness of global cities for varied reasons, there are also a few compelling factors that are pushing Indians to invest in properties abroad.

Environmental Concerns: Factors such as air and water pollution to deteriorating condition of Indian cities infrastructure, security and overall quality of life is making Indian HNIs to invest in international properties as ‘Plan B’.

Unfriendly Tax Structure: One of the reasons for seeking properties overseas is the unfavourable tax regime, prompting HNIs to move their wealth to more tax-friendly jurisdictions.

Regulatory Hurdles: Regulatory challenges are also driving rich Indian to park their wealth in properties outside India such as complex domestic real estate regulations and lax legal remedies.

Low Returns: Low rental yields and appreciation in the domestic market relative to international opportunities and poor-quality product as compared to global standards are other factors pushing India’s rich to look towards foreign shores.


Even in a high-interest rate environment, the constrained supply and consistent demand are expected to support rental growth, making international prime property an attractive diversification strategy for Indian buyers, according to Knight Frank’s latest Prime Global Rental Index.


Indian’s Global Real Estate Playbook

63 Indians have always had an affinity towards real estate as an investment. Today, HNIs apart from domestic real estate are increasing their investments in offshore properties global gateway cities such as New York (Rank 3), Singapore (Rank 13) and London (Rank 14), where sustained rental growth reinforces their appeal as stable long-term investment destinations. Indians are buying property in cities like London, Dubai, and New York potential for high returns & tax advantages and European cities like Athens, Lisbon, and Cyprus for residency and lifestyle amenities.

Topping the charts is United Arab Emirates (UAE) a global business and lifestyle hub, that offers Indians a stable market with the potential for high returns and a tax-free environment. It also provides a favourable visa and residency environment through real estate investment. US, UK and Canada, despite economic headwinds, remain favourite for Indians, due to potential for strong returns and currency diversification benefits, in addition to non-financial drivers such as educational opportunities and lifestyle aspirations. Australia, too is a favoured investment destination for its stability, high quality of life, and excellent educational opportunities that makes it attractive for Indian HNIs European countries are considered resilient markets with future upside and the potential to travel within the Schengen Area. Greece, Spain and Portugal offer residency or “Golden Visas” for property investment to Indians, and thus are much sought after destinations for real estate investment.

Other options include Malta, Latvia, Hungary, and Caribbean nations like St. Lucia and Antigua and Barbuda. Turkey is known to provide a strategic location between East and West for business expansion with a Citizenship by Investment program that is a lucrative deal for Indian HNI businesses. Cyprus is attractive due to its “Golden Visa” program, which grants EU residency and citizenship, along with economic stability and favourable tax policies. The options are tremendous, when it comes to real-estate buying across the world. And it is no longer a vanity play for Indians, but in fact has become a strategic business move that can secure an attractive yield, legacy and lifestyle in one shot.

The reasons for growing interest of Indians in international real estate, range from Indian cities compromised standard of living and lesser financial returns to the attraction of lifestyle advantages and access to global economy for businesses.