Luxebook November 2022

Uptick in Indians investing in real estate abroad Indians are shopping for property in the world’s most influential addresses BY ARUSHI SAKHUJA & SCHENELLE DSOUZA I ndia’s booming economy makes it a home to many multi-millionaires. It’s not surprising that AsiaPacific Wealth Report statistics point to Indians being the highest investors in foreign real estate, with a 50 per cent market share. While in the previous decades it was a rare phenomenon, with celebrities and NRIs having homes abroad, today the demographic of people investing in real estate overseas — for business or leisure — has seen a sharp increase. Indians have chosen to invest in their second homes abroad. Capital appreciation abroad Attractive investment destinations include countries like Thailand, Dubai, Toronto, Sydney, Netherlands, Germany, New York, and Australia. These are places where they can get good capital appreciation and a stable rental yield. “ London, Dubai, Singapore and Australia have been perennial favourites for Indians interested in buying real estate in foreign countries. There is also evidence of increasing interest in some other Middle-eastern countries,” shared Anuj Puri, Chairman, of Anarock Group, a property consultancy. Mr. Shravan Gupta, Co-Founder and CEO of YOURS Second Homes shared, “Dubai, Portugal and the UK are popular because real estate investments in these places also give the investors access to a golden visa or a permanent residency permit. These destinations attract investments from Indians who want to have some overseas assets in their portfolio. In addition, these are all popular tourist destinations that Indians visit frequently.” “The trend of Indians buying properties abroad is more than a couple of decades old, but the interest in such acquisitions keeps fluctuating in tandem with the Indian economy (which has a fairly direct correlation to their purchasing power), job prospects and family presence in the target country, and the changing immigration laws in that country,” further added Mr Puri. According to a 2019 report, over 3,000 Indian families own some of the most luxurious properties in London’s most affluential addresses. However, a driving force for property in London according to Knight Frank is a drop in property prices in the city. The report stated, “An effective discount of about 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 benefitted Indian buyers.” Despite that, places that offer residency options providing visafree access are also becoming popular amongst HNIs, with the base investment being real estate. India’s economy and the interest from international investors, the spending power of the nation has drastically increased in the last decade. It was back in 2015 that a report by Sotheby’s International Wealth Report predicted that by 2020 India’s High Net-worth Individuals (HNIs) and the ultra-rich would pump in Mr. Sudeep Chandran, Co-Founder and COO, YOURS Second Homes INVESTING OVERSEAS 16|L U X E B O O K|N O V E MB E R 2 0 2 2 N O V E MB E R 2 0 2 2 |L U X E B O O K| 17