Why are more Indians buying off-plan apartments in London?

This piece explains why more Indians are opting for off-plan apartment investment in London and how factors like education planning, flexible payment schemes and long-term investment goals shape this trend. It also covers how parents strategically use property ownership to manage student housing costs and how off-plan purchases boost capital growth during construction. You will also find the list of London locations favoured by Indian investors.

A decade ago, Indian money in the London market meant trophy homes in prime areas like Mayfair or Knightsbridge. Today, the profile looks different. Upper-middle-class families, professionals and first-generation overseas investors are quietly grabbing off-plan apartments further out from the City in search of excellent buying opportunities.

Recent market data indicates that Indian buyers are now among the leading international purchaser groups in London, outpacing buyers from the Middle East and parts of Asia in many boroughs. This growth is driven by the way London’s off-plan property fits into three priorities: education planning, diversification and long-term capital growth.

Off-plan apartments are properties bought before construction is complete. These properties offer a combination of great entry prices with capital appreciation potential and strong rental demand. For discerning Indian buyers, this property type offers a practical entry point into one of the world’s most resilient property markets.

The education factor: owning instead of renting

More than 140,000 Indian students receive UK study visas annually, making Indians one of the largest student populations in the country. A large portion of these students choose London, due to the presence of reputable universities such as LSE, Imperial College, UCL and King’s College London.

Accommodation is often the most expensive part of studying in London. Rents here are high and competition for decent accommodation is intense. Indian parents are increasingly asking a simple question: Why pay rent for three or four years when the same money can be invested in an asset?

Off-plan buying makes this timing work. It’s ideal for parents to purchase one or two years before their child starts university. During construction, payments are conveniently spread out. By the time the student arrives in London, the apartment is completed, furnished and ready for occupancy. In many cases, the property is already worth more than the original purchase price.

This approach solves many problems at once: first and foremost, it removes uncertainty around student housing; second, it replaces wasted rent with a mortgage or ownership; and lastly, it creates a long-term London asset that can be easily rented or sold at a later stage.

The financial sweet spot of off-plan property in London

Off-plan property deals differ from resale homes and this distinction matters to overseas investors. With a resale property, the full price is usually paid within a few weeks of the sale. With off-plan, buyers usually pay a 10-20% deposit and the balance is cleared in stages over the construction period. This phased payment option allows Indian buyers to strategically plan remittances and manage cash flow, rather than transferring large sums in a single transaction.

There is also a capital growth advantage known as growth on the full value. Even though only a deposit is paid initially, any price increase applies to the entire property value. Over a two or three-year construction period, this translates into meaningful uplift by the time of completion.

Transferring money legally: LRS and tax structure

One of the biggest misconceptions about buying property in London from India is that moving money is complicated. In reality, most buyers take advantage of the Reserve Bank of India’s Liberalised Remittance Scheme (LRS). Under this, a residential individual can remit up to USD 250,000 per financial year for permissible purposes, including overseas property investment.

It is beneficial if families plan together: a couple can remit USD 500,000 in one year and a family of four can legally pool up to USD 1 million. This amount is sufficient to buy a substantial London apartment. There is also a 20% Tax Collection at Source (TCS) on foreign remittances above ₹7 lakh. This is not an additional tax but an advance that investors can adjust against income tax liability when filing returns. It’s ideal to work with tax advisors to structure this efficiently.

Where are Indians buying property in London?

Indian buyers are not limited to a single area in London. Their choices fall into three broad categories. First is the cultural belt: this includes areas such as Wembley, Harrow, Ealing and Southall. These areas are preferred for their range of Indian retail outlets, restaurants, temples and strong community combined with excellent transport links.

Second is regeneration zones like Greenwich, Canary Wharf and Woolwich. These locations are appealing to younger investors and professionals as they host modern developments, strong rental yields and Elizabeth Line connectivity. Buyers prefer luxurious towers, complete with concierge and gym services; amenities that may feel familiar to Mumbai or Gurgaon luxury developments.

The third category is prestigious locations such as Nine Elms and Kensington. These areas have always appealed to high-net-worth buyers who prefer status, centrality and long-term capital protection over competitive rental yield.

Why is London considered a resilient market?

Over the past years, property prices in London have risen significantly and rents in some boroughs have risen to close to double-digit annual rates. This market is not immune to cycles and variations, but its secure legal framework, transparency and global demand offer safety to overseas buyers.

Most Indian buyers are not chasing quick returns. They are seeking long-term ownership in a stable real estate landscape, with consistent rental income in pounds and the flexibility to use the home for family use in the future. Unlike many emerging markets, the UK offers well-defined landlord rights and well-regulated letting practices. These factors become crucial when managing a London property from India.

A practical way to own property in London

Buying off-plan apartments in London is no longer about prestige. It is about perfect timing, the right structure and long-term planning. For parents, these factors offer certainty around student housing. For discerning investors, capital growth and currency diversification, and for globally minded families, it creates a foothold in one of the world’s most secure property markets.

What was once limited to the ultra-rich is now rapidly being adopted by professionals and entrepreneurs who plan in decades and not merely quarters. Off–plan property purchase has become the most simplified and practical way for Indians to enter the London property market without overstretching cash flow and reducing risk.

If you are considering buying property in London from India, whether it’s for your child’s education or to expand your investment portfolio, contact our Delhi and Mumbai offices for a private 1:1 consultation today.