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Why Buy Property Abroad?
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Where are the best places for Indians to Buy Property Overseas?
There is some similarity between Indianans and other countries, including Canadians, Chinese, Mexicans, and British that is, the same desire for real estate investments. According to the recent reports, Indians are the 5th largest investors in the world who are investing in residential property overseas. Also, the study shows that in the first 5 months of the present financial year, Indians bought 23.5 million dollars worth of property globally. As the financial system from all over the world tries to refresh their real estate industries, they are encouraging buyers from other countries. According to the experts, it might be the right time to invest in properties overseas. It is not a surprising fact that most Indians consider that owning a property is their lifetime investments. As the Indians do not have a social security scheme, they feel investing on the land is the safest option and it is their main priority. That is the reason many Indians prefer to buy property overseas. The Managing Director of RICS (Royal Institution of Chartered Surveyors) Sachin Sandhir says that the construction department, property, and land are interrelated to each other and that is the reason why currently overseas property investments are getting popular and they are becoming more lucrative and convenient, especially for Indians. The preferences of the buyers’ depend on various factors, like economic stability, taxes, and ownership cost. That is the reasons says the property advisory of Jones Lang LaSalle India country head and Chairman Anuj Puri that Malaysia, Singapore, Dubai, New York, and some places in the United Kingdom, mostly like London have been the most preferred choice by Indian investors. The preference of location completely depends on the objective of the buyer. For investments purpose, then many people are choosing the countries like Sri Lanka, Malaysia, Switzerland, Dubai, and Mauritius are famous. But, if the Indian investors looking for a place to live, then they are choosing the country with business and family members’ interest, mostly they are choosing the US and the UK. The analysts say that most of the Indian investors not just buying property overseas, but also they are moving out of the country for work, studies, or permanent residency as well. Most Indians prefer to own a property far from their homeland. These are the major reasons that are making overseas properties profitable for other earning categories too and not just the High Net worth Individuals. According to Samanthak Das, a National Director and Chief Economist of Knight Frank, the insight about investing on the international property have been largely restricted to high net worth individuals buying luxury property at striking foreign locations. He also says that 68 percent of the investors in overseas properties are mostly the businessmen and 21 percent are traders or self-employed. Why are they buying? Indian buying property overseas is not any new fact for HNIs and NRIs who visits abroad frequently. The most prominent change that you can see today is the likeness of the buyers and the analysis for choosing the overseas properties and new approving destinations for Indians. Also, with the economic changes in the recent time and the need for encouraging benefits for buyers in the property sector is not exactly allowing the buyers to buy within the country. That is the major reason why the Indian investors are seeking other alternatives to own the property in their favorite destinations in the world. The reason for investing overseas for each individual will be different; some investors like to invest in short-term assets appreciation, some invest for their personal use, and some like to get a regular income from rents, etc. Many Indians invest in overseas property mostly because they personally aspire to have more property in different places. Most favored property type:
How much are buyers are spending?
The United States: According to the NAR (National Association of Realtors), Indians invested 7.8 billion in the United States real estate between 2016 April and 2017 March. The most favorite real estate market includes Texas, Florida, New Jersey, California, and Arizona. Even with the appraisal of the Indian currency, and the tweaks caused by the president in the visa system does not affect the Indians in buying the property in the US. Most of these Indian investors feel that the real estate market in the US is kind of financial security for NRI as it will not have a bigger tumult compared to the real estate market in India or no potential in the BSE (Bombay Stock Exchange). According to the experts, the online searches clearly showed that the Indian investors were interested in investing on property near the Silicon Valley, as this area has a big Indian community as it is where the Indians are recruited heavily. Also, they are interested in investing near the suburbs and educational institutes. The United Kingdom United Kingdom Overseas Real Estate: The SIW (Sotheby’s International Wealth) report shows the estimation of high net worth that Indian investors are putting in the next five years after 2015 was around one billion pounds every year in the United Kingdom real estate. Also, the reports suggest that around three thousand Indian families own the most lavish properties in London districts like South Kensington, Mayfair, Chelsea, Belgravia, Barker Street, Portman Square and St James. Indian investors were less in 2015 compared to other Asian, West-Asian, continental European, and Russian property investors in the UK. Australia Overseas Real Estate: The popular Australian cricket Steve Waugh has been foretelling Australian real estate market to the investors from India. For an expat, the mid-class Indian is a potential target. Also, the experts feel that as both the countries Australia and India, are Commonwealth countries that have similar qualities which makes them bond together well. But, still the Chinese are the most dominant real estate investors across Australia property. But, the fact is that the Indian real estate market allowing the Australian leading developers to display in India shows that they are open to the Australian real estate market. Tokyo Overseas Real Estate: Indian investors are also showing interest in other places in Asia like Bangkok and Tokyo overseas real estate. Both the places attracting investors from India as they both are attractive to buy property on rental income has low taxes. Also, the Pattaya in Thailand is another hot property that many investors in India are showing interested to own condos as they are very affordable as the starting price of a condo will be around Rs. 35-lakh only. The United Arab Emirates -Dubai Overseas Real Estate The Gulf is one of the interesting countries for Indian real estate investors; also, the country always welcomed Indians. The GDLD (Government of Dubai’s Land Department) report shows that the only the Indians alone invested Dh12 billion in real estate market compared to the overall contribution of Dh 91 billion. Around six thousand Indian investors invested in the property in Dubai. This is because most Indian investors feel that the Dubai is a right place to get good returns for their investment and the country do not charge tax on the property. |