While Indian nationals have traditionally favoured Britain, Dubai and US as offshore investment destinations, there has been a growing demand for Australian real estate, particularly hotels, serviced apartments and student accommodations.
Possible reasons for the above are:
- Australia's strong economic performance: Australia is one among a select club of only eight nations that can boast a pristine triple A rating with a stable outlook. Having one of the most diverse, advanced economies in the world, Australia's GDP growth is expected to continue at a steady 2.5% to 3%, making Australia an excellent investment location.
- Lifestyle and health: Australia has an abundance of natural resources and a geography which is very conducive to tourism, lifestyle and health care. The healthy living: high quality of water, air; and favourable climate conditions also prove as attractive factors for Indian investors.
- Education: excellent (world-class) education and learning institutions; strong focus by Australia federal and state governments to market Australia as a highly attractive study destination, targeting Asian student market.
- Sustainability agenda: Australian builders have embraced a sustainability agenda that provides substantial global benefits of environmentally sustainable residential and commercial buildings. This is a very attractive point for the socially conscious global investor thus making a real estate investment in Australia, a preferred option for many.
- Safe market: Australia is seen as a safe market with secure capital and income growth. In terms of both capital appreciation and rental returns Australian property has enjoyed a consistent average annual growth rate of 7% per annum in the last 40 years. The doubling in value of properties every 7 to 10 years, compounded with the leverage that property offers, has offered investors an excellent Return on Investment (ROI). It enjoys a healthy political and social stability.
- Legal system and property ownership: Australia has a sound legal system. Investors in Australia can enjoy structures which offer identification and protection of private property through secure land titles.
- Population and urbanisation: Steady population growth with most of the economic activity and urbanisation centred along the East Coast. Melbourne and Sydney property markets have peaked, and Brisbane is now emerging as Australia’s ‘New World City’ and a highly attractive investor and visitor destination, due to its affordability and other factors.