Indian HNIs bitten by overseas realty bug
The Economic Times, May 27, 2009, Page 3
Prices In US, UK, Australia, South Africa, Singapore Fall Up To 35%
Writankar Mukherjee KOLKATA
THE slump in global realty markets has thrown open opportunities for Indian high networth individuals (HNIs). The near 25-35% fall in property prices in Australia, the US, the UK, South Africa and markets closer home such as the Gulf and Singapore, has triggered a huge surge in demand from Indian buyers keen to invest in overseas property.
Realty brokers claim Mumbai and Delhi — which usually lead the pack in overseas property deals — are witnessing nearly 100% growth in such transactions since February with some 25 to 30 such transactions taking place every month. Brokers claim buyers in Surat, Bhubaneshwar, Jaipur, Ahmedabad, Vadodara, Kolkata and Amritsar are also showing interest.
“It’s really a good time to buy property overseas since prices in most of these markets are even cheaper than in some top Indian cities. The demand is more in Dubai, Malaysia, Singapore, Thailand, Australia and London,” CB Richard Ellis CMD (South Asia) Anshuman Magazine told ET.
There are plenty of projects in Dubai which are selling at a price band of Rs 2,500-5,000 per sqft. Land in the UK countryside such as Cheshire is being sold for Rs 1,100 per sqft, while that in Helsby at just Rs 370 per sqft. By comparison, prices in some major Indian realty hotspots are equally competitive—flats in Gurgaon are priced at Rs 3,000-5,000 per sqft, in Kolkata’s Rajarhat at Rs 2,800-3,500 per sqft and Navi Mumbai between Rs 1,800 and Rs 6,000 per sqft.
In the US, home prices have reportedly fallen in nine out of 10 cities. Brokers claim realty prices in cities like Fort Myers (Florida), Saginaw (Michigan), Akron (Ohio), San Francisco, Riverside and San Jose (California) have dropped by more than 40%. What’s more, nearly 40-odd islands are up for sale in Australia at three-year old prices—one can grab an island for A$1.3 million.
The ambassador of Ireland in India, Kenneth Thompson, said the global meltdown has reduced property prices in Ireland by 25%. “As a result, we are now seeing several Indian HNIs and NRIs buying property in Ireland, especially holiday homes in western parts of the country,” he said.
Even as a pure play investment option, foreign real estate is becoming attractive. “In fact, several of the buyers plan to give their flats on rent. Even now, the return on investment through rental earnings is around 10-12% in the US compared to a 2-5% return in India,” said Jones Lang Lasalle Meghraj associate director Mayank Saksena.
The Gulf and the UK are turning into investor havens due to their investor-friendly regulations. For instance, in UAE a foreigner does not need to pay tax on income on purchase and sale of property. Similarly, Qatar, too, is turning out to be a good option since it is a tax-free country.
“Even three years back, some of these markets had strict regulations for foreigners buying property. However, the liberalised policies in the backdrop of the global real estate slump is now a big trigger,” REBI head (East) Hemant Sikaria said. REBI has handled several overseas deals in Dubai and the Southeast Asia.
The Economic Times, May 27, 2009, Page 3
Prices In US, UK, Australia, South Africa, Singapore Fall Up To 35%
Writankar Mukherjee KOLKATA
THE slump in global realty markets has thrown open opportunities for Indian high networth individuals (HNIs). The near 25-35% fall in property prices in Australia, the US, the UK, South Africa and markets closer home such as the Gulf and Singapore, has triggered a huge surge in demand from Indian buyers keen to invest in overseas property.
Realty brokers claim Mumbai and Delhi — which usually lead the pack in overseas property deals — are witnessing nearly 100% growth in such transactions since February with some 25 to 30 such transactions taking place every month. Brokers claim buyers in Surat, Bhubaneshwar, Jaipur, Ahmedabad, Vadodara, Kolkata and Amritsar are also showing interest.
“It’s really a good time to buy property overseas since prices in most of these markets are even cheaper than in some top Indian cities. The demand is more in Dubai, Malaysia, Singapore, Thailand, Australia and London,” CB Richard Ellis CMD (South Asia) Anshuman Magazine told ET.
There are plenty of projects in Dubai which are selling at a price band of Rs 2,500-5,000 per sqft. Land in the UK countryside such as Cheshire is being sold for Rs 1,100 per sqft, while that in Helsby at just Rs 370 per sqft. By comparison, prices in some major Indian realty hotspots are equally competitive—flats in Gurgaon are priced at Rs 3,000-5,000 per sqft, in Kolkata’s Rajarhat at Rs 2,800-3,500 per sqft and Navi Mumbai between Rs 1,800 and Rs 6,000 per sqft.
In the US, home prices have reportedly fallen in nine out of 10 cities. Brokers claim realty prices in cities like Fort Myers (Florida), Saginaw (Michigan), Akron (Ohio), San Francisco, Riverside and San Jose (California) have dropped by more than 40%. What’s more, nearly 40-odd islands are up for sale in Australia at three-year old prices—one can grab an island for A$1.3 million.
The ambassador of Ireland in India, Kenneth Thompson, said the global meltdown has reduced property prices in Ireland by 25%. “As a result, we are now seeing several Indian HNIs and NRIs buying property in Ireland, especially holiday homes in western parts of the country,” he said.
Even as a pure play investment option, foreign real estate is becoming attractive. “In fact, several of the buyers plan to give their flats on rent. Even now, the return on investment through rental earnings is around 10-12% in the US compared to a 2-5% return in India,” said Jones Lang Lasalle Meghraj associate director Mayank Saksena.
The Gulf and the UK are turning into investor havens due to their investor-friendly regulations. For instance, in UAE a foreigner does not need to pay tax on income on purchase and sale of property. Similarly, Qatar, too, is turning out to be a good option since it is a tax-free country.
“Even three years back, some of these markets had strict regulations for foreigners buying property. However, the liberalised policies in the backdrop of the global real estate slump is now a big trigger,” REBI head (East) Hemant Sikaria said. REBI has handled several overseas deals in Dubai and the Southeast Asia.
Posts
No comments:
Post a Comment