Are Real Estate purchases in foreign countries a wise decision for Indians?

Buying real estate outside of India has become popular and continues gaining traction. Investors look to invest internationally in properties for a higher return on investments.

Real Estate purchases in foreign countries

You must consider many factors when purchasing a property outside India. A study showed that India's super-rich owns at least 5.1 properties on average. The number reduces to 4.2 units worldwide. UHNWIs (Ultra-high-net-worth-individuals) use 37% of their wealth to purchase and control primary and secondary properties. They use 15% of the wealth for residences outside India. Buying property in a foreign country is becoming lucrative for Indians. 

Read: Is it a good time to purchase real estate?

Is The Real Estate Market Lucrative Internationally for Indians?

Investing in real estate internationally was earlier restricted to NRIs and HNIs. However, the number of people investing internationally in real estate has increased. Indians choose to purchase second homes outside the country, which has become a lucrative option for investment with potentially more returns. 

How Good Is the Return On Real Estate Internationally?

There is no definite answer, but the returns can significantly differ. It depends on factors like taxation rules, capital appreciation, rental yield, etc. Generally, the returns one gets in international real estate are higher than the domestic real estate investments because of foreign exchange rates. Returns from real estate internationally can provide higher yields compared to investing in real estate in India. However, investors must conduct thorough research before putting their hard-earned money into international real estate. Carrying out due diligence is essential before purchasing real estate internationally. 

Is Buying Properties Internationally a Growing Trend In India?

Purchasing real estate internationally is quickly becoming a popular option amongst investors. It is because of a greater desire for diversifying investments and higher disposable income. Another reason is the lucrative returns of investing in international real estate. However, you must remember that there are various factors you should consider when you purchase real estate internationally. These include Permanent Residency and Citizenship by Investment programs, economic stability, infrastructure facilities, quality of life, etc. 

Read: Best real estate stocks in India.

Indians look to purchase real estate internationally due to its higher return on investment. However, it would be wise to do due diligence before buying property in a foreign country. Higher incomes and attractive returns are encouraging Indians to buy outside India. 

Benefits of owning real estate internationally 

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or legal advice. You should separately obtain independent advice when making decisions in these areas.


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