Indian billionaires are not buying properties in Mumbai, Bangaluru, Hyderabad, Delhi due to..., but investing in...

International cities like New York, London and Dubai are catching the eyes of rich Indians. Over the last 5 years, these cities are becoming the hotspots where the wealthy Indians, especially the High-Net-Worth Individuals (HNIs) and Ultra-HNWIs, are investing in properties. Indians are investing in big penthouses, heritage homes. Famous names like Lakshmi Mittal, Adar Poonawalla, and Ravi Ruia are some of the big names, following this trend. 

But why?

Aakash Puri, Director at India Sotheby’s International Realty, puts it, "For India’s affluent class, luxury real estate is more than a status symbol— it’s an investment strategy that blends capital appreciation, lifestyle enhancement, and portfolio diversification. Increasingly, this strategy is looking beyond India’s borders."

A recent survey called India Luxury Residential Outlook 2025 shows that the trend of owning property in top global cities has seen a sharp rise, from 10-11 percent to an increase to 22 percent, as it helps them grow their wealth, a smart way to invest money.

There are 4 broad reasons for this growing trend:

1. Property prices and housing demands rising: London, Dubai, and New York are the global hubs and the  property prices here are high, but they are always steadily rising. In Dubai, home prices went up by 6.8 per cent in 2024. A further 15-20% rise in 2025 is also expected. 
2. Currency hedge: In case, the rupee value falls back home due to inflation, the foreign properties purchased in dollars or pounds often stays strong or appreciates, thus a good way of wealth preservation.
3. Rental Income: Luxury homes in London and New York pays a good rental income. From students, business leaders and entrepreneurs, especially Indians look for rented homes. For example, in Central London, annual rent returns are usually around 3.5 per cent to 4.5 per cent of the property’s value which is considered a solid return.
4. Enhancement in lifestyle: It improve their lifestyle as it is considered as a big achievement in social and financial circles. There is also access to elite education institution. These properties also become multi-generational legacies.