International Real Estate – the rise of a new and profitable investment avenue

Indian individuals and businesses are increasingly establishing their presence overseas for commercial as well as education purposes. Real Estate investments into overseas Geographical markets, hence is on the upswing.

Reasons - more than one.

Business: Businesses may want to buy properties in countries of frequent work visits. Example: diamond traders buying homes in Macau, Hongkong, Antwerp. Dubai is of course one such hub.

Education: Individuals may look to buy properties abroad to ensure proximity to the universities their children might be going to. With the steadily growing number of Indians aspiring to study abroad, there seems to be quite an opportunity for real estate too!

Diversification of investments into different geographies is also an important factor.

Some of the positives of investing overseas can be

  • Minimum risk: In most projects, prices are fixed. The area calculated for pricing is restricted to ‘usable area’. Plus the investors are limited to shelling out no more than a down payment of 20% for under construction properties, with the balance monies to be paid upon completion. This ensures that the maximum investment has to be done upon delivery. So the investor can breathe easy until then.
  • Timely delivery: Developers are legally bound to meet deadlines, ensuring that the investor can have an optimal financial planning towards the investment.
  • Value for money: Investors usually get fully fitted apartments beginning from as less as INR 35 lacs even in the top destinations across the world. A global lifestyle at low thresholds of investment!
  • High rental yields: While the capital appreciation might be higher in India, investors can expect more than double rental yields in the overseas markets. Compared to the 1-3% yield that can be expected from the domestic market, overseas investments promise sunnier days!

Having said that, real estate investments need a watchful eye at every stage. In my next post, I will talk of key points to be kept in mind while investing overseas and also discuss the RBI regulations involved.


About the author

Mona Jalota works at Colliers International India as Senior Associate Director – NRI & International / Residential Services. She is well  versed with various aspects of Real Estate in international and domestic markets and has worked for 8 years in the global markets for inbound and outbound sales. She has an elaborate performance track record and has launched in India products of developers from various locations such as London, New York, Malaysia , Kenya , Muscat etc.


 

India
Colliers International | Mumbai, Indiabulls Finance Centre, 17th Floor, Unit No. 1701, Tower 3, Senapati Bapat Marg, Elphinstone (W), Mumbai 400 013, Maharashtra, India | Tel: +91 022 4924 9780