Recent trends show wealthy Indians looking to acquire more property outside of their country, as property prices in Mumbai continue to rise higher than ever before. Prime areas on their radar include Dubai, London, and Singapore, among others.
According to the regulations set forth by the Reserve Bank of India (RBI), Indians may remit up to $100,000 per year for current and/or capital account transactions. For property outside of India, they can purchase real estate without approval from the RBI.
While Indian property has been largely unaffected by the global recession, property prices in Western and Gulf countries have sunk to the bottom, making it an ideal market for affluent Indians looking to capitalize on phenomenally-low property prices.
"We have seen a marked rise in interest across our Dubai portfolio from Indian investors," remarks Niall McLoughlin, senior vice-president, Damac Properties.
Other emerging markets are also seeing a rise in investors from places like Africa and China. For Indian investors, the price difference is significant with an average price per square foot in India estimated at $664, compared to $264 in Dubai. Dubai has also opened up its market, making it easier for foreign investors to own property.
A similar situation applies in London, where Indians purchased nearly 300 million pounds worth of real estate in areas such as Mayfair, South Kensington, Holland Park, Chelsea, and Belgravia. Many of the properties are second or third homes. Similarly, Indians are grabbing executive condos in Singapore and enjoying the reduced prices.