US real estate market: New destination for Indian investors
Indian investors investing in US
Indian real estate market is lucrative for investment and attracting the investors, but now Indian investors are also investing in the US real estate market, which is emerging as an attractive investment destination. Indians are showing a lot of interest to buy properties in US, according to property consultant Jones Lang LaSalle (JLL)
As per the report published by the US National Association of Realtors, Indian buyers have purchased the residential properties in US, of worth $5.8 billion in last one year period ending March 2014. This investment magnitude recorded a growth of around 6 per cent over 2013. According to recent reports, Indians have spend $459,028 or Rs 2.81 crore on an average to buy properties in the cities of US such as; Las Vegas, Chicago, Dallas, Los Angeles and New York..
The most interesting finding is, that Indian High Net worth Individuals (HNIs), who have obtained American citizenship and are settled there have several reasons for investing in properties in US. Apart from the love of Indians to country, most of Indians who have become naturalized as US citizens have family interests and as well as they have their business in major American cities, as per the statement of JLL Chairman and Country Head Anuj Puri. He also added that after the steep post-Lehman downturn, several countless investors have been able to snap up properties in American cities at unbelievably low prices as these investments are seeing good ROI because now US real estate market is reviving.
The Reserve Bank of India (RBI), has recently increased the ceiling on outward remittances for those who are buying the overseas property under the (LRS) Liberalised Remittances Scheme to $1, 25,000 from $75,000. This enhanced investment limit is a small, but it’s an important window. For example, Now a married couple can together buy a small property in a US suburb only if they have the inclination to do so., whereas; earlier real estate as an option was entirely withdrawn from the LRS scheme and the limit purview, according to Puri.
Puri, further added that, since a few apartments in the US are currently held by institutional investors who had bought them during crisis from distressed sellers, so for foreign buyers it’s easy to deals with such institutions rather than with individual US house owners.
