Singapore, Malaysia, New York, Dubai and some cities in the UK, the suburban areas of London in particular, are preferred destinations for Indian property buyers, according to real estate consultancy firm Jones Lang LaSalle.
The real estate market in many countries offers lucrative investment prospects. Apart from that, Indians buying property abroad can in some cases avail of citizenship in the host country. This factor has considerable aspiration value with many, according to Anuj Puri, Chairman & Country Head, Jones Lang LaSalle India.
The aspiration factor aside, property in various locations in the Indian metros has become prohibitively expensive. Moreover, interest rates on bank loans are proving to be a stumbling block and may rise further with the future revision of RBI norms.
In comparison, an Indian seeking to buy a property in New York, London or Singapore can avail of the considerably lower interest rates of local banks in those countries. Many foreign property markets are transparent, which enables investors get ‘clean’ deals much faster and easier.
Investment in property abroad makes sense for those who are employed or have business interests in the country of choice. Indians who have settled or are planning to settle abroad permanently are among the prime candidates.
A buyer’s profile
The broad profile of Indians looking at buying properties abroad would include business owners, professional property investors, mid-to-top level company management and high networth individuals (HNIs). A large component of buyers is also comprised of people whose children study in those countries.
The US and the UK are closest to the hearts of most Indians looking to buy property abroad. When these are out of reach, Dubai is among the most preferred among property investment destinations for Indians.
The current limit on Indians for investing abroad continues to be $200,000 per annum (about Rs 1.2 crore at Rs 60 to a dollar). This ceiling applies to any kind of investment in a foreign country. The investable amount doubles in the case of couples.
The Indian Government may consider relaxing the ceiling further if it perceives increased interest by Indians in investing in foreign properties, according to JLL.