Singapore, Malaysia, New York, Dubai, London suburbs and some other UK cities, are the preferred destinations for Indian property buyers, according to real estate consultancy firm Jones Lang LaSalle (JLL).

The real estate markets in many countries offer very lucrative investment prospects. Apart from that, Indians buying property abroad can, in some cases, become citizens of the host country. This factor has considerable aspiration value with many, according to Anuj Puri, Chairman and Country Head, JLL India.

Also encouraging investment abroad is the fact that real estate in Indian metros has become enormously expensive. Moreover, interest rates for bank loans are already proving to be a stumbling block and may rise further with the future revision of RBI norms.

In comparison, an Indian seeking to buy property in New York, London or Singapore can avail himself of considerably lower interest rates of local banks in those countries. Many foreign property markets are transparent, which enables investors to get ‘clean’ deals much faster and easier.

Investment in property abroad makes sense for those who are employed or have business interests in the country of choice. Indians who have settled or are planning to settle abroad permanently are among the prime candidates.

Buyer’s profile

Business owners, professional property investors, mid-to-top-level management personnel and high net worth individuals (HNIs) are among the typical buyers of properties abroad. A very large proportion of buyers also consists of people whose children study in those countries.

The US and the UK are the most preferred property markets. When these are out of reach, Dubai is the next favourite. The current limit for Indians investing abroad continues to be $200,000 a year (about Rs 1.2 crore at Rs 60 to a dollar). This ceiling applies to any kind of investment in a foreign country. The investable amount doubles in the case of couples.

The Government may consider relaxing the ceiling further if it perceives increased interest by Indians in investing in foreign properties, according to JLL.

rishikumar.vundi@thehindu.co.in

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