Recent developments in markets such as Vietnam highlight the growing interest in overseas real estate.
Vietnam is seeing rapid urbanisation and infrastructure development, while large developers such as Vinhomes are building integrated townships and large-scale urban projects.
Vinhomes, part of the Vingroup group, has developed large-scale urban communities that combine residential projects with commercial, education, healthcare, hospitality and other amenities.
Vinhomes reported strong sales and revenue growth in the first half of 2026. The company reported first-half net profit of VND 52,092 billion, while presales reached VND 148,104 billion.
For an Indian investor, however, the bigger question is not simply whether a country’s property market is growing. There are several factors that need to be assessed before putting money into an overseas property.
Check the rules before transferring money
Indian residents cannot treat an overseas property purchase in the same way as buying a home in India. The transaction has to comply with the foreign exchange rules applicable to resident individuals, including the Liberalised Remittance Scheme (LRS).
The annual remittance limit, permitted purpose, documentation and tax requirements should be checked before committing to a property purchase.
Factor in currency risk
A property may appreciate in local-currency terms but still generate a poor return for an Indian investor if the foreign currency depreciates against the rupee.
For example, an investor buying a property in Vietnam, Dubai or the US has exposure not just to the local property market but also to the Vietnamese dong, UAE dirham or US dollar against the rupee.
The return should therefore be assessed in rupee terms, rather than simply looking at the property’s local-currency price.
Don’t look only at the property price
The purchase price is only one component of the cost.
An investor needs to account for registration charges, local taxes, legal fees, maintenance, insurance, property-management costs and, where applicable, brokerage and financing costs.
These expenses can materially reduce the rental yield or eventual capital gain.
Understand whether foreigners can actually own the property
Property ownership rules vary significantly between countries.
Some markets allow foreign ownership of certain residential properties but impose restrictions on land ownership, location, property type or the percentage of a development that can be owned by foreigners.
An investor should therefore verify the title structure and foreign-ownership rules before paying a booking amount.
Rental yield may not be as attractive as it looks
A property marketed as a source of rental income needs to be assessed on net rental yield, rather than the advertised rent.
Vacancies, maintenance, local taxes, property-management fees and currency movements can reduce the actual return.
An investor should also check whether the property is intended for long-term rentals, short-term rentals or holiday accommodation, since local regulations can differ.
Exit risk matters
Real estate is much less liquid than listed stocks or mutual funds.
A property may look attractive while the market is rising, but selling it quickly at a reasonable price can become difficult when demand weakens.
Before buying, investors should examine the local transaction volumes, typical selling period and availability of a secondary market.
Developer risk cannot be ignored
Large overseas projects can involve long construction periods, multiple phases and significant dependence on the developer’s ability to execute.
The Vinhomes example also highlights why the developer matters. The company has a portfolio of large-scale urban developments and continues to expand its infrastructure and real estate activities in Vietnam.
But investors should independently assess a developer’s financial position, track record, project approvals, construction status and delivery record rather than relying only on the scale or branding of a project.
Check the tax implications in India
Buying property abroad does not take an investor outside India’s tax framework.
Income earned from the property, such as rent, may have tax implications, while the eventual sale can have capital-gains consequences. Foreign assets and income may also have to be appropriately reported in the investor’s Indian tax filings, depending on the individual’s circumstances.
The tax treatment in the country where the property is located also needs to be examined to understand whether taxes are payable there and whether relief is available under the applicable tax rules.
