Luxebook November 2022

about one billion pounds annually in the UK real estate. And that is exactly what happened; today more Indians want to invest in properties abroad in a post-pandemic world. With many Indians looking to invest overseas — as residents or citizens with passports — in 2020 there was a 63% increase in Indians looking to invest abroad. Knight Frank’s Wealth Report 2019 stated that 21% of Indian ultra-high net-worth individuals (HNIs) showed interest in purchasing homes overseas. Pointing to an interesting fact, Anuj Puri shared, “Depending on their purchasing power and exact purposes and plans in the target country, Indians may opt for affordable housing in the outskirts of main cities, compact office-cumresidences closer to the city centres or – in the case of the very wealthy – townhouses in the most aspirational neighbourhoods.” Larger margins attract HNIs Over the years the Indian rupee has seen a depreciation and the dollar is getting stronger against the rupee even today. According to Indian Wealth Report, 2019, the longterm average shows that INR has depreciated against the US dollar by about 4% per annum over the last 40 years. With the dollar appreciating, investing in overseas real estate offers large margins for rental income. “It is primarily HNIs and UHNIs who are interested in investing overseas. HNI millennials have emerged as one of the biggest investors in luxury real estate, and the discernible reason for this is the desire to escape ordinary life. The rise of the elite working population in metro cities such as Delhi-NCR, Mumbai, Bangalore etc. has also motivated developers to come up with highbudgeted, grand-scale luxury buildings,” said the duo at YOURS Second Homes. But another interesting aspect is the skyrocketing prices of properties — especially bungalows — in India that today go to three-figure crore price tags. However smaller apartments in different parts of the world often come at a cheaper price. Anuj Puri provided another perspective, “The key reason for Indians looking beyond boundaries and buying a property is investment, followed closely by the aspiration of having a second home there and for selfconsumption due to business interests.With many opting to send their children abroad for studies nowadays, they prefer to buy a property in the concerned city.” Anuj Mr. Shravan Gupta, Co-Founder and CEO YOURS Second Homes further adds, “The numbers would be fairly steady with decent increase year-on-year. Further, the relaxed RBI norms also lures Indians to consider property buying abroad. For instance, in 2015,RBI doubled the Liberalised Remittance Scheme (LRS) for resident individuals to $2,50,000 annually. Many investors will elect to buy a property in a certain country if its property market sees a downturn and prices become attractive. We had seen this happening during the US subprime crisis, and more lately during the Brexit angst in the UK.” Some of the other major reasons driving Indians to overseas destinations is a slowdown in the Indian real estate market and better business opportunities, a better quality of life, along with children’s education. Hence buying commercial/residential property for investment purposes is emerging as key factor — be it holiday homes or apartments.With large-scale liberalization and globalization, aspirations have gone global, allowing Indians investing in real estate abroad for different reasons. Giving a clearer indication of the demographic Anuj Puri shared, “As of today, a considerable number of young Indians from the entrepreneurial set, the nouveau riche, those with settled families abroad and those with expected or existing business interests in a target country will consider buying a property abroad. Those ultra-rich Indians, say even celebrities and film stars whose children go out to study or otherwise as well are also buying properties outside in the respective country/city.” Post the pandemic experts have seen a change in preference for cities with Dubai and New York gaining a lot of attention. Dubai was not only the hub for travel during the pandemic but the ease of carrying business and relaxed covid guidelines caught the interest of many Indians looking to get a residency visa on the purchase of a 1 million DH property. Further the short flight duration and ease of accessibility make it more attractive. Most popular destinations to invest in abroad Oftentimes investing in international real estate is considered to be among the most viable form of investments given there is much less volatility. It is much more stable in terms of investment profits compared to other financial markets such as the stock market, where there is no guarantee of profits. Aside from this fact, what makes real estate investments a smart deal is the increase in demand for housing, given the population growth and increased tourism in 2022 alone. There are a number of reasons to invest in real estate abroad, however, rental investment is among the most popular reasons for individuals to invest in international real estate. While they do occasionally use the property as a holiday home, putting it up for rent when not in use, is the best way to earn back their investment, plus more. It is for this very reason that individuals who decide to invest in international properties, look at popular holiday destinations such as US, UK, UAE and other parts of Europe. UK and UAE alone have had some of the biggest investments over the years, with many international citizens, not just Indians buying properties here. Here are some of the top international destinations that Indians are investing in, and here’s why you should too. London London is one of the most popular cities in the world. In addition to being a preferred destination for work and education, it is also one of the top destinations for real estate. In fact, in 2018, London was voted the number one Anuj Puri, Chairman, ANAROCK Group 18|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| 19