Indian HNIs becomes third highest property buyers Overseas: Sotheby’s

Indian HNIs in overseas market are becoming a priority buyer. In the latest report of Sotheby’s International Realty, Luxury Real Estate Overview 2018, Indians comprise the third largest buyers group in luxury real estate market worldwide. The top buyers are Chinese, followed by Canadian wealth barons. Number of Indians buying luxury assets overseas have been through a sharp rise in recent times. Owing to growth in this specific customer base, Sotheby’s International Realty will launch an exclusive desk for Indian buyers. This will be in New York, but per the auction house, Indians are entering the European Realty market as well.

Per reports, in 2017, 22% of total property buyers in central London were Indians. In US, Indians spent USD 7.8 billion buying residential estates in the year. This was a rise by almost 2 billion USD from 2016 figures of 6 billion dollars. CEO of Realty auction house Philip White said India is creating significant wealth. Buying property is not only a growing trend among NRI and PIOs, but also Indians residing in the country are investing and buying more real estates in US as well as in Europe. Per a PwC official Praveen Bhambani, Tax implications are no longer a factor for Indian buyers in this sector.

Apart from growing purchasing power of Indian HNIs, several factors are leading to a sharp rise of their property ownership overseas. The changing tax policies and real estate regulation like RERA have made it possible for Indians to invest in properties outside the country. Presently, Indian real estate is considered as a low market after several regulations made the sector transparent and more regulated. Before years, the sector was through a bubble with property cost rising up pumped with black money and corruption.

In 2017, per a study by Knight and Frank, in the first five months Indians bought property worth USD 23.5 million. Apart from US and England, Dubai have also become a top destination for Indian HNIs. According to the report 68% of these buyers are Businessmen and Industrialists, followed by 21% of self-employed and traders. Working professionals comprise 7% of these property buyers. Most of the buyers preferred condominiums and apartments, comprising of 68% of properties brought by Indians abroad. Villas is the next favorite with 20% of the share.