India's Rich Eyes on Abroad Properties

Bangalore: Gone are the days when cash rich Indians wanted to park their money in buying ultra-luxury properties as an investment or accommodation purpose. In today’s date, emerging high net worth individuals (HNIs) are more interested to expand their property investment overseas, rather than buying luxury property in the country. Besides, most of them are buying properties in places like Sri Lanka, Dubai and the United Kingdom (UK).

Over the past eight years, the number of Indians who want to invest in abroad properties has increased 40 times and it reached $77.7 million in 2012 from a mere $1.9 million in 2005. According to RBI data, around $16.6 million was remitted this March only for property purchases which is two times more compared to the amount transferred last year same period, reports Meera Siva of The Hindu Business Line.

With the help of Liberalised Remittance Scheme (LRS) that allows domestic Indians to transfer fund overseas, an increasing number of cash rich businessmen and professionals have started investing in overseas property. Also the Government has raised the amount that can be transferred from $25,000 in 2004 to $200,000 in 2007.

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There was no pause in the increasing property prices after the market revival from 2008 economic slowdown. And in 2012, Indians were among the top property buyers in Dubai, when the market was gradually picking up.

“More than ever before we see wealthy Indians looking to buy a second home outside the country,” said P. N. C. Menon, Chairman of Dubai-based Sobha Group.