Wealthy Indians Prefer to Buy Home Overseas

Reserve Bank had permitted Indians to make their investment within a limit of $50,000 back in 2004 but the limit was increased to $200,000, later on. Over the years, the number of Indians who want to invest in abroad properties has increased. In the year 2005, around $1.9 million Indians invested in abroad properties and the number recorded for last year was $62.2 million.

Buying property overseas is quite normal for non-resident Indians (NRIs) but nowadays wealthy Indians travel abroad frequently for business purposes, are now getting attracted towards investing in property across the globe.

Such overseas investments happen to only a selective group of investors or home buyers. But, according to top-notch property consultants like Jones Lang LaSalle, CB Richard Ellis, Cushman & Wakefield and Knight Frank, enquiries for abroad properties have doubled than before and more number of people are now enquiring on how to invest in overseas properties.

Moreover, banks in India do not provide fund for buying abroad properties. Similarly, when buying a property abroad, banks there do not provide fund without any citizenship or properties held or possessed by the person. For instance, bank in UK lend money for property only if the buyer hold any assets in their country. Therefore, in such kind of property transactions, personal savings are the one which is being used generally, said Pranay Vakil, former chairman of Knight Frank India.