The Hindu Business Line : Property shopping goes global

Investment World - Real Estate & Construction
Markets - Foreign Institutional Investors
Industry & Economy - Real Estate & Construction
States - Maharashtra
Property shopping goes global

S. Shanker

Villas in Mauritius, studio apartments in London and beachfront houses in Miami — these are some of the properties global realty players are showcasing to the affluent here in India. Global realty players who made a beeline to tap the Indian real-estate market are now wooing Indians to shop for property overseas.

Dubai beckons

Dubai-based DAMAC Holdings has signed up 60 agents across India to sell properties in Dubai to Indian investors.

Mr Hussain Sajwani, Chairman, says, “Our agents will guide our potential customers about investing in Dubai; especially in our projects, namely, ‘Ocean Heights’, a 82-storey tower in Dubai Marina, ‘Lotus Heights’ in the bustling Business Bay, and ‘Park Towers’ at DIFC, and several recently launched high-end luxury living options. DAMAC apartments cost five million dirham upwards. Many Indians have bought residences as well as commercial properties based on their budget and requirements.”

London calling

Last week, London-based realty service provider Aylesford International was in Delhi and Mumbai, marketing hillside villas in Mauritius costing Rs 18-35 crore. These beachfront villas come with freehold plots of 0.8 to 1.25 acres.

Ms Camilla Mabbott, Marketing Director, met over 100 HNIs (high net worth individuals) in Delhi and Mumbai over dinner and had discussions with prospective buyers. “It’s adding to their holiday portfolio.”

Oversupply, more than the sub-prime crisis in US, had led to a dip in prices in high-end properties in US, Spain, Italy and at certain places in France, she says.

The sales promotion package includes a discount of $70,000 stamp duty and a five per cent land transfer fee. Aylesford Chairman, Mr Harry Langton, said more and more Indians were travelling abroad and were keen on buying property overseas not only for investment but also for leisure.

UK-based Dandara Holdings Ltd says it is in talks with ICICI Bank to offer its products to the bank’s clients while showcasing some of its residential space in London for the Indian investor in Mumbai last week.

Marketing its residential units as investments rather than own-to-occupy, the company said a 10 per cent down payment would be enough to own an apartment in London, Manchester and Glasgow, where one and two bedroom apartments cost between Rs 0.90 crore and Rs 2 crore. Mr Seamus Nugent, Group Investment Sales Director, says the company guarantees its customers a rental income equivalent to the mortgage amount of two to three years. No payment towards principal amount was necessary and customers could sell their properties and book profits at a later date, after paying off the bank loan, as property prices in the UK double in seven years.

Promoting offshore developers

At the other end of the spectrum, Axiom Estates, a property services provider for NRIs globally, has launched its India operations. The company markets the products of major Indian developers abroad, including those of Ansal, DLF, Hiranandani, Rahejas, Puravankara, and Unitech.

Mr Rajesh Goenka, Chairman and CEO of Axiom Estates, said “till date we have been marketing Indian real estate to NRIs, but now with our operations in India we will be in a position to cater to the large emerging pan India cross-city market which is currently not being serviced. While we offer Indian real-estate to the overseas buyer, we will commence offering international properties to the Indian buyer.”