When there is a downward slide in the graph of the real estate of India, there is an increase in the Indian investments in the properties of London. As per a report— London Super-Prime Sales Market Insight-Winter 2019—by Knight Frank, a real estate consultancy firm, “there was an 11% year-on-year increase in the number of Indian homebuyers in prime London markets in the 12 months to June 2019.” The report says that in London—Mayfair, Belgravia, Hyde Park, Marylebone and St John’s Wood are some of the areas where most Indians are investing.
Along with the various reasons, one of the major reason of this interest of Indian buyers in the properties of London is that there has been a drop in the prices of properties in London. This is why it is attracting more buyers from India.
According to report, “an effective discount of about 20%, taking into account the currency and price movements in prime central London in the period between the European Union referendum and October 2019, has benefitted Indian buyers.”
Report also says that the profile of wealthy Indian buyers is becoming younger. “The average age of super-prime buyers in London is falling, with some 73% of super-prime buyers below 50 in the year to September 2019, which was up from less than half at the start of 2015,” said report.
A lot of Indians buy properties abroad. “When compared to investments in Indian markets, the yields for both capital and rental are higher. As the domestic economy hits a slow block, we can expect Indians to continue the momentum of investments in a mature market such as London that offers higher returns and relatively shorter hold period,” said Shishir Baijal, chairman and managing director, Knight Frank India.
Indian Residents are allowed to remit an amount of $250,000 per financial year (April to March) under the Liberalised Remittance Scheme (LRS) of RBI. As there is limitations for individuals, they consider buying it jointly with family members.