Indian companies are actively acquiring stakes and buying into international businesses, and it's not just corporations; affluent Indians are also keen on foreign locales for second homes. Amid a challenging economic landscape characterized by escalating inflation, many wealthy Indians find themselves preoccupied with the question of where to establish their second residences around the globe. Analysts observe that this trend among the elite pursuing properties abroad is quite sensible, particularly as Indians increasingly aspire to play not just a domestic but a formidable international role, professionally and entrepreneurially. With the Indian economy on an upward trajectory, the total number of wealthy individuals is also on the rise. This tendency to own multiple homes is a well-established norm in many developed countries, where affluent individuals have long been acquiring second and third properties. It appears that India's wealthy populace is now poised to follow suit in this regard.
Aditi Vijayakar, the Director of Transaction Services for Residential at Cushman & Wakefield notes that "Indians have typically preferred markets like Dubai, Singapore, Malaysia, the US, and the UK. The latter two are particularly favored by end users and NRIs who live and purchase locally. Over the past two to three years, Dubai, Malaysia, and Singapore have emerged as enticing investment destinations, with escalating property prices across these regions."
Destinations such as Dubai, Malaysia, Singapore, Thailand, London, Sydney, Melbourne, and Mauritius are currently among the most preferred locations where Indians are purchasing second homes.
Regarding financial aspects surrounding the acquisition of properties abroad, the costs can vary substantially based on the desired country. A significant policy aiding this movement is the Indian government’s provision of a $200,000 annual personal allowance for property investments abroad.
Potential buyers must navigate several formalities when considering purchasing a home in a foreign nation. It's crucial to comply with the respective country's rules, regulations, and legal stipulations. The procedures and entire buying expedition differ from one country to another, necessitating a thorough understanding of local laws and requirements.
Despite the challenges in acquiring overseas properties, the allure of investing in a second home abroad is appealing due to numerous advantages. Many of these destinations boast stable and mature real estate markets, ensuring promising and substantial rental yields on property investments.