Indian investors are showing growing interest in global real estate, with average property purchases typically ranging between USD 150,000 and 500,000, though premium destinations like Dubai, London, and New York can command much higher prices. Financing options vary widely by country: while developers often extend construction-linked or post-handover payment plans, mortgages from foreign banks are available only after meeting rigorous eligibility criteria. Since Indian banks cannot finance overseas properties, most buyers rely on foreign lenders or personal remittances under the Liberalised Remittance Scheme (LRS).
Legally, residents must comply with both Indian and local regulations. LRS currently permits remittances of up to USD 250,000 per financial year, which must be used transparently to acquire the property. Buyers also need to adhere to tax and reporting rules in India and the destination country, ensuring that rental income or sale proceeds are handled as per FEMA guidelines.
Long-term payment plans offered by overseas developers are generally FEMA-compliant, provided each instalment is made through legitimate LRS remittances. These schedules must not resemble external borrowing, and all payments should move directly from the buyer to the developer. When documented properly, these plans offer Indian investors a smooth and compliant path to owning international property.
Harshit Kukkar, Associate Principal Partner, Square Yards, said, “Financing options available for Indian residents to buy overseas properties vary by country, but most developers offer flexible payment plans, including construction-linked schedules and post-handover plans.
“Some foreign banks and financial institutions may extend mortgages to non-residents, though eligibility norms can be stringent. Indian banks cannot fund the purchase of property located overseas, so buyers usually rely on foreign lenders or own remittances,” he said.
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Published Date: 4th Dec 2025
