Rising wealth driving Indians to buy homes overseas: Nish Bhatt, Millwood Kane International

Buying property abroad is a dream for many Indian. Many HNIs and UHNIs have been buying properties in various overseas markets. Money9 spoke with Nish Bhatt, Founder & CEO, Millwood Kane International, an investing consultancy firm with focus on real estate, to understand what drives Indians to buy overseas properties and the recent trends.

What are the broad trends of Indians buying property abroad and what are the preferred destinations?

We have witnessed a strong trend of Indian investors buying properties overseas. The reasons range from setting up a base to expand business abroad and residential homes for their children studying in foreign universities. There is also demand from HNIs/UNHIs for a second home overseas. The pull for an overseas property are good climate, investor-friendly taxation rules, state of travel & tourism, medical & education facilities. Countries like the UK, Cyprus and Grenada are among the preferred destinations for NRIs/HNIs buying properties.

What are the broad price trends in these markets?

Broadly the current price range in these markets offer great value for investors, the potential appreciation and quality of life it offers is higher if compared to other countries for a residential property. These markets have provided good returns for investors in the past decade. Real estate prices in the UK are near an all-time high due to the investor-friendly measures by the government like the stamp duty holiday.

Do Indians look for premium properties or moderately priced ones?

Indian investors prefer premium luxury properties. These are typically independent villas and apartments that are well connected to the Central business districts. Properties near an education hub are also on the preference list as wealthy Indians send their children abroad for higher education in marquee institutes of education and offer higher levels of privacy.

What are the main reasons driving Indians to look to buy property abroad?

Despite the setback due to Covid-19, Indian fortunes are on the up as more wealth is created, Indian investors buy property abroad to set a base to expand their business. Investment overseas is also looked at as a prudent asset allocation for HNIs.

Are Indians looking to buy property abroad for self-occupation or as an investment?

Largely the number of inquiries from Indian investors is for investment purposes. It may be occupied by their children who move overseas for higher education and better employment opportunities. Investment overseas is also seen as a retirement option as the rents are seen as being more secure.

Are you seeing larger interest among Indians for overseas properties post Covid-19 pandemic?

From March-April last year the number of inquiries has risen to buy property overseas. The main idea is to shift to a foreign country that offers better health infrastructure and vaccination facilities. We have seen a shortage of vaccination in counties with high populations, including India. Shifting base to a less populated country helps in a pandemic situation as the lockdown is less stringent due to optimum management by civic and health authorities.