Berkley Group Targets Indian Investors with London Properties
British real estate developer, The Berkley Group, is courting Indian investors with two exclusive London properties, each flat priced between Rs 2-8 crore. Partnering with global property consultant Jones Lang LaSalle Meghraj (JLLM), the company anticipates a surge in investment from affluent Indians in British residential properties, potentially reaching £15 billion by 2018.
JLLM Predicts Significant Indian Investment in UK Real Estate
In a report titled ‘UK-India Cross-Border Investment’, JLLM, responsible for marketing Berkley’s units in India, projects that Indians could acquire between 20,000 and 30,000 residential properties in the UK over the next decade. The property consultant suggests that the current market climate offers an opportune moment to invest in UK real estate. JLLM anticipates a twelve percent decline in house prices this year, followed by a further 6-8% dip in 2009. However, they foresee a rebound, with projected annual growth of 8-9% between 2010 and 2013.
UK Developers Eager to Attract Indian Investors
Raminder Grover, Managing Director of Homebay Residential (a JLLM subsidiary), stated, “UK-based developers are highly interested in attracting investors from India. They are aiming not only the high-net individuals, but also the upper-middle segment. The UK represents a very amenable market for Indian investors the British pound is far more stable than the rupee, there is far greater clearness in the UK real estate market.” Grover emphasized the stability of the British pound compared to the rupee and the transparency of the UK real estate market as key attractions for Indian investors. Long lease terms of up to twenty-five years, consistent income generation potential, and the upcoming London Olympics in 2012 further contribute to the attractiveness of this market. The firm also highlighted the anticipated increase in high-net-worth individuals in India, projecting growth from the current 123,000 to 400,000, holding a combined wealth of $1.7 trillion. However, JLLM acknowledges that India's annual limit of $200,000 on capital outflows for resident Indians might pose a constraint on investment levels.