New Craze For Homes Abroad

Indian companies picking up stake and buying out foreign businesses . Not only Indian Inc, but Indians are also showing their interest towards foreign destinations for second home. At the time when the Indian economy is struggling to get hold of the rising inflation, many of the rich Indians are actually busy fussing over and worrying about which part in the world to set up their second home.Analysts say that this trend of the swish set setting up second home abroad is only logical , going by the way the Indians are lining up to play a much bigger role, be it professionally or entrepreneurially , on the global stage. As the Indian economy is growing, so is the number of wealthy people. In developed countries, the trend of acquiring second homes is normal, and the wealthy have been buying second and third homes since ages now. And, now it is time for India to follow the same trend.

Aditi Vijayakar, Director, Transaction Services, Residential, Cushman & Wakefield said, “Indians have typically preferred markets like Dubai, Singapore, Malaysia, the US and the UK. The latter two locations have been preferred by end users or NRIs who live and buy locally in these countries. Dubai, Malaysia and Singapore have been locations which have generated interest over the last two to three years as investment destinations and prices in all three markets have soared”. Dubai, the Middle East, Malaysia, Singapore, Thailand, London, Sydney , Melbourne and Mauritius are most definitely some of the most popular destinations where Indians are buying a second home.

As far as the money is involved in the process of buying a home abroad is concerned, it depends on the country where the person plans to buy the home. But the one policy which has most certainly helped in the rise of this trend is where the Indian government has offered two lacs US dollars annual personal allowance to be spent on property abroad.

There are quite a few formalities one needs to take care of in order to buy a home abroad. Of course, one will have to comply with the rules and regulations and the legal requirements of the country one plans to buy the home in. The procedure and entire process for buying a home abroad varies from country to country, and it’s imperative that one is well versed with the local laws and requirements.

Even though it might not be an easy task to acquire a home abroad, there are certain benefits of investing in a second home in another country which might seem inviting. Most of these destinations have a stable and mature real estate market which helps in the assured and high rental returns on the investments on the property.

One Comment

  1. Posted July 9, 2008 at 3:47 am | Permalink

    Indians have emerged as the largest property buyers in the UK thereby contributing to economic development of the country, as per the data compiled by real estate firms and British Government research. Indian companies in UK has pushed corporate activity to a great extent and the Reserve Bank of India (RBI) move to allow investments abroad to the scale of $100,000 are some major factors listed by broking firms.In 2005-06, India emerged as the third largest investor after the US and Japan. The country moved ahead to 2nd position with the $7.6 billion takeover of Corus Steel by the Tatas in October 2006.Real estate projects from India increased to 76 per cent from mere 11 per cent thereby making India the UK’s third largest investor.Today, the UK houses more than 400 Indian companies. Of this, around 23 per cent have begun their UK operations in 2006. Officials estimated that India’s business operations in the UK are now worth nearly $35 billion.Parking money in London real estate is serving as a status statement for most successful Indian entrepreneurs. Rich Indians prefer to invest in exclusive central London areas since its financial climate is more stable than India.For more view-

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