More Indians are purchasing real estate in global markets in recent times. Indians were the biggest buyers in terms of property values and volumes in Dubai last year, purchasing properties worth approximately Rs.208 billion across 6, 263 investors as per information recently released by the Dubai Land Department. The report from DLD states that Indians contributed a whopping 25% of all transactions and were also the leading foreign investors for the first half of 2017, followed by the British, Pakistanis, Canadians and Chinese buyers.
The factors driving this buyer interest are easy to identify since around Rs.6.3 crore or $1 million will get investors only a flat of 1, 000 sq. ft. in Mumbai while investing the same amount in Dubai will get them at least 50% extra according to the Chairman of Anarock Property Consultants, Anuj Puri. With the explosive rise in property prices, investors in higher income brackets are considering realty options abroad. Dubai is naturally a highly preferred destination since costs are relatively lower along with other emerging realty investment destinations like Singapore and Kuala Lumpur according to him.
Global markets are always more attractive for different grades of property buyers at varying price points according to the CEO & Country Head at JLL India, Ramesh Nair. Nair also stated that Indians have always preferred real estate and globetrotting professions and higher disposable incomes have opened up new possibilities for these realty buyers. Indians with business or family interests abroad are seen to invest in property in global locations.
Nair also stated that real estate investments in a foreign country also help in diversifying the financial portfolio and also ensures enhanced capital growth coupled with fixed and regular rental incomes in case the investment is deployed in suitable markets. In the first phase of the Hartland project in Dubai by Sobha Group for example, 25% of buyers are Indians. According to the Chairman at the Sobha Group, PNC Menon, there are fewer incentives for real estate investments in India as compared to the Emirates. In Dubai, for example, investors from India will receive tax breaks between 8-10%.
The top global hotspots for realty investments are the United Kingdom (UK), Dubai, Italy, United States, Thailand and Spain according to Nair. From studio apartments that are priced under Rs.1 crore to luxury properties priced more than Rs.50 crore, Dubai offers a comprehensive range of investment options. The proximity to India, the stable economy, cosmopolitan culture and top-notch infrastructure make it a major preference for Indian investors. London is perceived as a good investment destination since there is a softening of property prices and the economy is expected to go through a small downturn of sorts which makes it more enticing for investors in the future according to Nair.
Indian real estate developers are coming up with premium residential projects in London and Indians contribute approximately 20% of buyers for the two projects by the Lodha Group, namely Grosvenor Square and Lincoln Square. Indian buyers purchased residential property in the United States worth $7.8 billion in the 12 months concluding in March, 2017. Indians are the fifth biggest investors in real estate in the United States. These properties were majorly bought for primary end-use purposes or for usage by children studying in the country. America is preferred since it has reasonably priced properties instead of high-end luxury units. Indians desirous of purchasing a property in the United States can get sizably lower interest rates of the local banks present there.