The Hindu Business Line : Affluent Indians ready to splurge on realty abroad

New Delhi, July 1 Luxury cars, plush vacations, exclusive memberships — and now the well-heeled have a new passion to add to the bling. As the booming economy cranks out fresh millionaires and rising salaries add to middleclass affluence, Indians are rushing to buy properties in locations such as Mauritius, Dubai, London and Malaysia, where annual Return on Investments range anywhere between 15 and 20 per cent.

Consider this. Indians have emerged as one of the key buyers for Lunea Villas and other projects of Anahita in Mauritius, where acquiring a property could set you back by $1.6-5.8 million. “Seven Indians have bought our properties so far. We are encouraged by the response and intend to have more roadshows for Indian buyers in future,” says Mr Seamus Moore, Director of Sales and Marketing, Playground Real Estate Sales, the exclusive marketing agent for Anahita.

Interestingly, Mauritius has an IRS scheme, which encourages foreigners to purchase property — those buying property of at least $500,000 can get a Mauritian residency status and tax benefits.

“Dubai, London, and Singapore are similarly emerging as attractive options and the RBI’s move to liberalise limits on overseas investments has only accelerated the decision-making. There are businessmen and investment bankers who are interested in buying apartments in a foreign country,” says Mr Pranay Vakil, Chairman, Knight Frank India. The liberalised remittance scheme now allows resident Indians to draw up to $100,000, instead of the earlier $50,000 towards overseas investments.

Mr Anuj Puri, Chairman of Jones Lang LaSalle Meghraj, feels Dubai is emerging as a hot favourite amongst Indian buyers, particularly after the liberalised remittance scheme. “The accessibility, reasonable prices, and investment appreciation are drawing Indian crowds to Dubai realty market. London and lately South East Asia (Malaysia and Thailand) are reflecting prominently on the investment radar too,” Mr Puri added.

And although there are no ready statistics on Indians eyeing realty overseas, industry watchers say that the number of people — with surplus cash and existing investments in India — looking to buy their next “home” overseas is swelling. “In certain cases the foreign developer also offers the buyer an option to lease out the newly-acquired property,” Mr Kumar Gera, Chairman of CREDAI, said.

More Stories on : Real Estate & Construction | Overseas Investments

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Mumbai is not rained out just yet

Top 10 cos raise $3.1 billion through FCCBs

Honda’s small car won’t come cheap

Affluent Indians ready to splurge on realty abroad

Sensex, Nifty may touch new peaks

FIIs keep faith in mid-caps

PE firms more interested in buyouts