U.S becoming the new property hub for Bangalore Honchos
Indian investors have managed to provoke quite a furor with their growing interest in real estate in the United States. The investments by Indians in residential property in the United States witnessed an exponential rise in comparison to the previous year. Executives in Bangalore’s technology industry are reportedly the most generous investors in the US real estate.
Indians come only after the Chinese (heading the race for real estate investment) and Canadians, as a community actively devoted to real estate investments. The National Association of Realtors (NAR), US states that investments by the Indian community rose as high as $3.9 billion in 2012-13. The growth in real estate investment by the Indian community vis-a-vis the residents of the United Kingdom can be observed by a margin of 38%. Los Angeles, Las Vegas, Chicago, Dallas, and New York were the real estate eldorados for Indian buyers.
Sudeep Chandran, the owner of Terrafirma Developers advises in favor of a work visa valid for at least six years and a good credit rating to those who aspire to set up homes in the U.S. Bank loans are available with an interest rate poised which is in between 3.5% to 3.75%.
With their children studying in the US, Indians are investing y way of necessity. Better valuation and portfolio diversifications are also reasons; according to the CMD of property consultancy firm CBRE South Asia, Anshuman Magazine; for the growing Indian interest in US property.
Mudassir Zaidi traces this unprecedented increase in overseas investments to the slowing down of the Indian market. Indian property buyers have spread their green wings to other overseas markets like those based in the UK, Singapore, Australia and parts of Europe, besides the US.
Purchasing a US property remains affordable with prices still below the peak level attained prior to the Great Recession (December 2007-June 2009),” says the NAR report.
It is estimated that a sum in the ballpark of $459,028 (Rs. 2.81 crores) was spent by the Indian community for their US home purchase. The reason for such a marked rise in overseas transactions could be because of the fact that they are available at a cheaper price than most of the premium homes in the Indian metro cities. It is however Bangalore that steals the show. According to real estate observers The Indian prevalence in American real estate is greatly due to Bangalore’s large senior management in IT and technology. While some of them are employed in US-based multinational companies in India, many have other close network with the US real estate market.
Source: Indian Realty News
CBRE South Asia, growth in real estate, NAR, National Association of Realtors, Real estate investments
