Once upon a time in the bustling streets of Mumbai, lived a young couple named Arjun and Priya. They had saved diligently over the years and were now faced with a dilemma – where to invest their hard-earned money? The Indian real estate market had its charms, but a whisper in the air hinted at the possibilities beyond the borders. This tale unfolds the narrative of whether Indians should embark on a journey to invest in properties overseas.

In recent years, the idea of investing in properties overseas has gained significant traction among the Indian investor community. The allure of global opportunities, potential for higher returns, and diversification benefits have ignited the curiosity of many like Arjun and Priya. But is it a prudent choice, or are the pitfalls too steep to tread? Let’s navigate this captivating landscape with the help of statistics and data to shed light on the question: Should Indians Invest in Properties Overseas?

Like every other sector, real estate also has been severely impacted by the pandemic. With halted sales and construction activities yet to resume in full swing in other parts of the world, developers are an anxious lot. Recently, Hirav Shah conducted a webinar discussing Indians investing in properties overseas.

Mr. Hirav Shah, the Astro Strategist cum Business Astrologer™, has been working closely with many of the leading Developers, Infrastructure, and Real Estate giants of India, USA, etc as a Real Estate Strategist, Real Estate Investment Advisor and has been actively involved in providing concrete predictions through Real Estate Astrology and Property Astrology. These days, Hirav Shah is also working with India’s leading builders and real estate developers mainly from Mumbai, Delhi, Bangalore, Chennai, Ahmedabad, Calcutta, and small Builders from small cities, etc for their existing and new projects to help them out, increase certainty, and to make strategies.

Talking about investing in the real estate sector, Hirav Shah says, “The security associated with owning a physical asset during  a crisis has resulted in increased demand.”

He says, “There has always been a growing fondness among Indians for overseas real estate investments. The growing presence of Indian investors in commercial and residential neighborhoods abroad has piqued the interest of stakeholders in the International Property Market.”

What is making Indians invest abroad?

Hirav Shah answers, “Several factors make acquiring an overseas property more attractive than a domestic one. The most common reason is the slow and sluggish real estate market in India. The overall high pricing in India’s metros, various government policies, poor growth potential, inferior infrastructure, and bad rental returns are some other factors.”

He explains, “To cite an example, for a sum of Rs. 45 lakhs, a property investor can purchase a fully-furnished condominium in Malaysia or Thailand, and that too at a prime location. Not only does this offer a great lifestyle but also an opportunity to earn at least 10% net rentals. On the contrary, the same amount would only fetch a 1 BHK somewhere in the outskirts of New Delhi or Mumbai.”

Explore the whole world

Hirav Shah tells, “High Net Worth individuals are opting for property options overseas instead of buying a holiday home in the hills or near the beach in India. Getting a premier property in a tourist destination would cost the same as a 2 BHK in prime locations of Delhi and Mumbai. The slowdown in the UK and the US economies in the last few years also have made real estate prices there more affordable.”

“Another major factor, besides the lifestyle and rental returns, for Indians to invest overseas is their children who are studying abroad. Also owning a second home overseas is not just a good investment, but the home itself can be handed over to professionals for maintenance and rent.”

“Some markets overseas are more attractive to investors than others. Malaysia is one such hotspot for Indians. Another favorite is London where the current economic slowdown is making property valuations lower, as per The Entrepreneur.”

Hirav Shah also reminds, “Also, the Liberalized Remittance Scheme for Indian launched by the RBI has increased the overseas remittance limit which has helped Indian investors buy properties overseas. Many foreign markets function in a more transparent manner with lesser bureaucratic red tape thereby making them more attractive to Indian investors.”

Some countries offer citizenship to investors

Hirav Shah informs, “Certain countries in the world offer Permanent Residency and citizenship benefits if you own a property there. Hence, real estate investment could be a good way for aspiring immigrants to gain easy access to residency.”

“Foreign realty markets demonstrate higher rental appreciation and unlike the Indian market, they have a higher capital appreciation per year. Most of the foreign markets are mature and stable and hence you would be able to enjoy capital appreciation.”

Understanding the Domestic Landscape

To comprehend the potential benefits of overseas investments, it’s essential to first glance at the state of the Indian real estate market. According to a report by Knight Frank, a leading real estate consultancy, India witnessed a notable boom in residential property prices over the past decade, with major metropolitan areas like Mumbai, Delhi, and Bangalore experiencing substantial appreciation. While this has been a boon for existing property owners, it also raises concerns about affordability and the sustainability of such growth.

The Indian government’s efforts to boost the real estate sector through initiatives like “Housing for All” and “Smart Cities Mission” have contributed to the sector’s expansion. However, the inherent volatility and cyclical nature of the market pose challenges for investors seeking stable and long-term returns.

Exploring Global Horizons

Enter the world of international real estate, where the landscape is as diverse as the cultures it represents. Countries like the United States, the United Kingdom, Canada, and Australia have become magnets for global real estate investments. A study by Juwai IQI, an Asia-based proptech group, revealed that Indians are increasingly eyeing properties in these countries, citing reasons such as education, employment opportunities, and potential for higher returns.

Statistical Insights

Let’s delve into some numbers to grasp the scale of this trend. According to the Reserve Bank of India (RBI), outward remittances for real estate investments have witnessed a steady rise. In 2022 alone, Indians invested over USD 2 billion in overseas real estate, a significant leap from previous years.

The allure of the United States, in particular, cannot be overstated. The National Association of Realtors reported that foreign buyers, including Indians, accounted for a substantial portion of residential property transactions in the U.S. Indian investors are drawn to the stability of the market, attractive rental yields, and the potential for capital appreciation.

Diversification and Risk Mitigation

One of the primary arguments in favor of international real estate investments is the concept of diversification. A diversified portfolio spread across different geographies can potentially shield investors from the adverse effects of a downturn in any single market. This risk mitigation strategy is crucial, especially in a world where economic landscapes are increasingly interconnected.

Final Word

Hirav Shah answers the last question, “Why does it make sense to buy a home abroad today?”

He says, “The strengthening of the Indian Rupee against several global currencies has made investments in overseas homes more affordable than a year ago. Resident Indians buying homes in the UK, Cyprus, Malaysia, and Dubai today would find property cheaper than a year ago. This is despite property appreciation in residential markets across Cyprus, UK, and Malaysia. So considering all the factors, this is the right time to invest in properties overseas.”

As the tale of Arjun and Priya unfolds, so does the realization that the decision to invest in properties overseas is not a one-size-fits-all choice. While international real estate presents enticing opportunities, it is imperative for investors to conduct thorough research, weigh the risks against the rewards, and align their investment strategy with their financial goals.

In the end, whether Indians should invest in properties overseas depends on their risk appetite, financial objectives, and the extent of their global ambitions. As the world becomes more interconnected, the prospect of venturing beyond domestic borders may hold the key to unlocking a world of possibilities for those willing to take the leap.

Hirav Shah who is an eminent Real Estate Astrologer and real Estate Investment Advisor himself advises Indians who want to invest in foreign properties to take advice from an efficient and proved Property Astrologer who can give property buying advice on the basis of date of birth and horoscopes and with the analysis of the property and also can tell the good and bad aspects of the property you are interested in.. He can also tell about the chances of losing property and risks involved in the investment. An astrologer can also predict what would be the best time for you to buy a house of your own.