Despite the real estate market in India not presenting a very rosy picture, a report suggests that rich Indians are purchasing property abroad. London, New Jersey, Atlanta, Toronto, Melbourne, Sydney are some of the locations that are drawing great attraction. An effective discount of almost 20%, taking into account the currency and price movements in prime central London in the period between the European Union referendum and October 2019 has proved to be advantageous to India buyers.
In comparison, investments in Indian markets, the yields for both rental and capital are higher (in some foreign locations). As Indian economy goes slow, Indians are expected to continue with investments in mature markets such as London that promises higher returns and relatively shorter holding period.
As per another report, 1% of Indian ultra high net-worth individuals (HNIs) have exhibited an interest of purchasing homes abroad. Another reason why Indians find investing in oversees market tempting is that it can work as a cushion against the domestic economy and market threat. Moreover, the investors also stand to benefit from decrease in the Indian rupee, at the time of selling or liquidating the investment.
Some of the other USP of the investments in foreign locales include the fact that most global cities have transparent real estate regulations when you compared to Indian market. For an instance, the US has highly evolved regulations, robust healthcare facilities, good education institutions and better quality of life.
Indians also invest in foreign locales with the intention of settling there. It must be noted that quite a few countries offer citizenship or allow those immigrants to stay longer who invest or purchase properties there.