Luxury Property Abroad or in India: Dubai, London, Singapore vs Gurugram, Mumbai
Luxury property abroad and in India serve different goals for wealthy Indian investors, according to real estate experts. India offers appreciation driven by domestic demand and infrastructure, while overseas markets can offer rental income, geographic diversification and different property cycles. The figures below are expert estimates, not guaranteed returns.
The case for India
Sankey Prasad, chairman of Sterling Ark Holdings, said luxury housing prices across India's top seven cities rose 40% between 2022 and 2025. He said the luxury residential market is projected to grow from $64.21 billion in 2026 to $107.99 billion by 2031, a CAGR of 10.95%. The growth rate checks out: 107.99 divided by 64.21 is about 1.68, which over five years is about 10.96% a year. Aayush Puri, CEO of Anarock Middle East and Anarock Channel Partners India, said Indian luxury property offers higher appreciation, while overseas property offers better cash flow.
The case for overseas
| Market | Expert-cited point | Consideration |
|---|---|---|
| India | 3-5% rental yields; borrowing above 8% | Appreciation-led, negative carry on loans |
| Dubai | Prime values up 194% (Q4 2020 to Jan 2026); yields near 6%; mortgage rates 3-4% | Cash-flow positive on the quoted figures |
| London | Prime prices under pressure; rental growth improving | Income outlook better than price outlook |
| Singapore | Tightly regulated; 60% stamp duty for foreign individuals | High acquisition cost |
On the quoted ranges, Indian yields of 3-5% sit about 3 to 5 points below borrowing costs of 8% or more, while Dubai yields near 6% sit about 2 to 3 points above mortgage rates of 3-4%. That spread is before maintenance, vacancy, taxes and fees.
What budgets buy
Prasad said Rs 5 crore could buy a premium apartment in select Dubai communities, and Rs 10 crore to Rs 20 crore could reach larger homes or select villas in prime locations. London offers apartments at the lower end of these budgets, with more prestigious neighbourhoods at higher spends. Puri said Rs 50 crore could buy a waterfront apartment or penthouse in Dubai or a luxury apartment in London's upscale districts. Bangkok is another option for branded luxury apartments.
Costs and rules to check
Indian residents can remit up to $250,000 per individual per financial year under the Reserve Bank of India's Liberalised Remittance Scheme (LRS) for permitted purposes, including overseas property purchases. Singapore's Additional Buyer's Stamp Duty for foreign individuals is a flat 60%. On a S$2 million home, that is S$1.2 million before other duties. Currency movements matter because returns are converted into rupees.
Prasad advised calculating five-year net returns after taxes, transaction costs, maintenance and currency movements. Experts also said investors should compare property-level returns rather than assume overseas real estate will outperform Indian housing. This article does not cover tax on remittances or on income and gains from overseas property, which depends on individual circumstances.
