Indian Investments in Foreign Real Estate on the Rise
Indian investors are increasingly eyeing foreign real estate, particularly in Europe and the United Arab Emirates (UAE), driven by attractive immigration schemes like the Golden Visa and promising rental yields of over 7%, according to insights from Propertywala.
Investment Trends in Foreign Real Estate
- Outward Remittances for Real Estate: In December 2023, Indians remitted Rs 240.2 crore for overseas property purchases, marking a significant increase from Rs 206.8 crore in the same period the previous year (Source: RBI Data).
- Annual Growth: FY23 saw a 38% surge in remittances for foreign real estate, with total outflows reaching Rs 2,714 crore, up from Rs 1,961 crore in the preceding year.
Immovable Property Types
Investments in foreign real estate encompass a broad range of immovable properties, including:
- Factories
- Warehouses
- Residential Buildings
- Manufacturing Spaces
Popular Destinations for Indian Investors
European nations experiencing significant immigration, thereby attracting Indian investment, are:
- Greece
- Cyprus
- Malta
- Spain
Golden Visa Program Insights
- Application Process Duration: Approximately 3-4 months, as informed by Ritesh Mehta, Senior Director at Jones Lang LaSalle.
- Citizenship Anticipation: Investors typically anticipate citizenship within 5-7 years.
- Eligibility: Offers residency or citizenship in exchange for investments in government bonds, real estate, or other approved vehicles.
Rental Profits in UAE
- Indian Investments in Dubai: Cumulative investments of $335 million across 123 projects in the first half of 2023, positioning India among the top investors (Source: Dubai Land Department, via Vestian).
- Average Investment Ticket Size in Dubai: Between Rs 4-4.5 crore, depending on location and property size (Insight from Vijay Sawlani, Property Junction consultant).
- Rental Yields:
- Average: 7-9%
- Desirable Areas (Downtown, Business Bay): Up to 11-13% for short-term rentals
- Golden Visa Eligibility for Dubai: Minimum investment of 2 million dirhams (approximately Rs 4.5 crore) for a 5 to 10-year residency.
Comparative Property Prices
- Dubai's Newer Emirates (Sharjah, Ras Al Khaimah, Abu Dhabi): Rs 25,000-35,000 per square foot, offering more affordable options (Vijay Sawlani).
- Upscale Mumbai Neighborhoods (Andheri): Rs 38,000 to Rs 45,000 per square foot.
Investing in European Real Estate
- Eligibility for Permanent Residency: Typically requires an investment of about Rs 4-8 crore in countries like Greece, Cyprus, Malta, and Spain.
- Rental Yields in Europe:
- Average: 4-5%
- Notable exception: Greece offers one of the least expensive residency programs, with popular locations including Athens, Thessaloniki, Mykonos, and Santorini.
- Entry-Level Investments in Europe:
- Rural Areas: Starting from Rs 2.5 crore
- Cities: Up to Rs 8 crore
- High Net Worth Individuals' Preferred Destinations:
- US and UK, though these locations come with lower rental yields (3.5-4%) and require larger ticket sizes (Rs 8 to 20 crore).