International Real Estate Market: More Indians investing in their second home abroad

Buying property in a foreign country can involve several factors that should be taken into consideration before making a purchase. Written by Sunil Dhawan

A recent study by Knight Frank shows that Indian super-rich owns 5.1 residential properties on average, compared to 4.2 units globally. Indian ultra-high-net-worth individuals (UHNWIs) allocate approximately 37% of their total wealth to primary and secondary homes, with the remaining 15% allocated to residential property held outside of India. Buying residential homes abroad is turning out to be a lucrative investment option for Indians. If you are looking to buy a piece of real estate abroad, here’s Nish Bhatt, Founder, and CEO at Millwood Kane International, sharing exclusive views with FE Online that can help you take a more informed buying decision.

How lucrative is the international real estate market for Indians?

Earlier investing in international real estate was restricted only to HNIs and NRIs, now the demographic of people investing in real estate for business or leisure — has seen a sharp rise. Indians have chosen to invest in their second homes abroad. Hence, the market can be a viable option for Indians looking to diversify their portfolios and potentially earn higher returns. Investing in real estate also helps set up a base for Indian investors.

How attractive is the yield for someone looking to buy property abroad for investment?

Returns on foreign real estate investments can vary widely, depending on factors such as location, market conditions such as rental yield, capital appreciation, taxation rules, and a specific property that the buyer purchases. In general, returns on foreign real estate investments tend to be higher than those on domestic investments due to the foreign currency exchange rates. Overall, foreign real estate investment can offer attractive returns. However, it is important to conduct thorough research and due diligence before making a purchase.

Also Read: Top concerns for global real estate investors in 2023: Colliers

Is the trend among Indians buying property in foreign countries growing?

There is a growing trend among Indians buying property in foreign countries due to higher disposable income and a desire for greater diversification of investments, as well as the potential for higher returns on investment. However, it is important to note that buying property in a foreign country can involve several factors that should be taken into consideration before making a purchase such as Permanent Residency and Citizenship by Investment programs, quality of life with respect to healthcare and infrastructure facilities, and economic stability.

Source : Financial Express January 19, 2023 16:45 IST