Wealthy Indians are buying luxury properties in places with low geopolitical risk

Wealthy Indians are buying luxury properties in places with low geopolitical risk

New Delhi: At a time when the stock market is reeling from extreme volatility due to geopolitical tensions and the resurgence of Covid, wealthy Indians are investing in places perceived as safe or offering better tax rates and opportunities for growth. ‘business.

These locations range from Candolim and Assagao in Goa to Medhufaru and Kunfunadhoo Islands in the Maldives to Marina Beach in Dubai.

Continuing a trend that started last year, wealthy Indian business families, startup founders and CXOs are pouring their money into luxury properties at home and abroad, places where geopolitical risks are low, luxury real estate development and brokerage firms told the Economic Times. .

The main reasons for this trend are investment diversification and residency status in another country as part of business expansion. “The strategy is to reduce risk by investing in different geographies,” said Ravi Machani, a Bengaluru-based entrepreneur and investor who bought a luxury beach house in Candolim and also focused on a luxury villa. in the Maldives.

“Lifestyle improvement”

Moreover, a recent survey by Sotheby’s International Realty also indicated that a majority of High Net Worth Individuals (HNIs) in India are looking to buy luxury residential real estate in the next couple of years. The main reason to buy property during the pandemic is for “lifestyle improvement”, he said.

“There is a huge cohort of customers who want to buy homes outside of their main city in India who have also purchased property overseas which is helping us record our best quarterly performance yet,” said Nibhrant Shah, founder of luxury vacation home developer Isprava Group, supported by Nadir Godrej, chairman and managing director of Godrej Industries, Anand Piramal, chief executive of Piramal Group, and the Burman family of Dabur India.

“Dubai has all these positives and a short travel time. Europe, for its relative stability, is a big draw, as is the United States,” explained Rohan Sharma, Director, Research and REIS, India, at JLL, international real estate consulting firm.

He added that other factors that add to wealthy Indians’ desire to buy luxury property outside include visa-free entry, access to better healthcare and infrastructure, and quality of life. overall. “Most places and countries offer a residency visa for an investment of a certain amount, and in Dubai it’s one million dirhams (approximately Rs 2.1 crore),” he said. -he shares.

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Wealthy Indians buy properties in Goa

Last year, Pinky Reddy, wife of GVK’s Sanjay Reddy, bought Palacio Aguada, a secluded sea-facing property in North Goa for Rs 80 crore, while Hyderabad-based GS Raju, a third-party contractor generation, became the owner of a luxury villa in Goa for around Rs 20 crore.

Mumbai-based couple Suraj Sadanah, who run a production house, and Manmeet Arora, a fashion designer, moved to Sangolda in North Goa last year. Ritu Nanda, a luxury home designer based in Goa, said: “An underrated sleepy town, Goa is seeing a drastic change in property prices.

For example, the property rate in Assagao has climbed to Rs 50,000 per square meter from Rs 30,000 two years ago.

Other prime locations in the country are Ooty, Coorg, Kasauli, Alibaug and Manali.

Dubai, Maldives

Outside India, the wealthiest are targeting the real estate markets of Dubai and the Maldives. “Property prices (in Dubai) have increased by 50%, especially villas which are in high demand,” said Viresh Chhabra, managing director of Forest Hills, a premium home brokerage firm.

Dubai allows full ownership and some of the prime locations are Marina Waterfront, Creek Harbour, Business Bay and Hartland.

With increasing rainfall there, “there is a huge shortage of villas in these markets,” Chhabra said. “Since this is a haven of peace with a rental yield of 7%, buyers are ready to pay 1.5 to 2 million dirhams (approximately Rs 3.5 crore), with villa tickets ranging from up to Rs 40 crore.”

Moreover, to meet the luxury needs of the wealthy, several luxury residential projects are also springing up in the Maldives. Tata Housing is developing two residential projects in Nadhee and Odean in the city of Male. This is the second phase of Tata Housing’s planned development in the Maldives, following the company’s construction of Arabia and Gakoshi in Malé.

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