Escaping the ABSD: Why Singapore NRIs are Bullish on Indian Realty (2026)

Introduction

Singapore is a great place to make money, but a tough place to grow real estate wealth—if you already own a home. The ABSD (Additional Buyer's Stamp Duty) is a wealth killer. For a foreigner or even a PR buying a second property, the tax hit can be 20% to 60%.

For the high-net-worth NRI in Singapore, the math is simple: Why pay a 30% tax to the government when you can invest that capital in the world's fastest-growing major economy?

1. The ABSD Arbitrage

Singapore: Buy a $2M condo → Pay $600k in Tax immediately. Value starts at -30%.
India: Buy a ₹5 Cr office space → Pay 5-6% Stamp Duty. Value starts at -6%.
The Logic: Indian real estate offers a "sensible" entry tax regime compared to the cooling measures in SG.

2. The "Tech City" Synergy

Singapore NRIs dominate the Fintech and Tech sectors. They understand the "Bangalore-Hyderabad-Singapore" corridor better than anyone. They are not buying random plots; they are buying Commercial Real Estate (Offices/Co-working) in India's tech hubs.

The Play: Buying Grade-A office strata that services the very MNCs they work for.

3. Transparency & Clean Capital

Singapore is the gold standard for clean governance. Historically, Indian real estate was too "messy" (cash components) for SG investors. RERA changed that. The digitization of land records and the "All-Cheque" deal culture in Tier-1 cities now aligns with the Singaporean expectation of compliance and transparency.

4. High Yields vs Low Yields

Singapore Rental Yield: ~2-3% (Residential).
India Commercial Yield: ~7-9%. For an investor seeking passive income to supplement a Singapore lifestyle, Indian commercial assets work 3x harder.

5. Proximity & Flight Connectivity

Singapore is just a 5-hour flight from India's southern metros. This accessibility allows SG NRIs to visit their assets (or elderly parents) over a weekend, making it a viable "secondary base" rather than a distant investment.

The "Catch": Tax Leakage (DTAA)

Singapore has low income tax. India has high income tax.

The Trap: If you move your post-tax Singapore money to India and earn rent, you pay tax in India. Bringing that money back to Singapore is tax-free foreign income (usually), but you have already paid the Indian tax.
The Fix: Use NRE deposits for liquid cash (Tax-Free in India) and Real Estate for long-term compounding (Capital Gains tax is lower than Income Tax).

Conclusion

The Singapore NRI is the "Smartest Money" in the room. They are pivoting away from the saturated, high-tax SG residential market to the high-growth, moderate-tax Indian commercial market.

Where to Invest: Look for Grade-A commercial assets or high-yield Holiday Homes in Goa that offer a lifestyle dividend.