If you are thinking of buying a home abroad, this is your time. As per recent reports, property prices are currently falling in the prime global locations like Dubai, Hong Kong, Britain, and New York.
Due to the fall in real estate prices, High Net-worth Individuals (HNIs) and Ultra High-Net-worth Individuals (UHNIs) in India are showing an increased interest in these markets. Relaxed RBI norms under which RBI doubled the Liberalised Remittance Scheme that permits the Indians to transfer funds abroad to $250,000 annually is also encouraging Indians to consider buying homes abroad, says Anuj Puri, chairman of real-estate advisory Anarock Property Consultants, Hindustan Times reported.
Various factors are driving prices down in certain foreign markets, making it a good time to buy. Since oil prices started falling in 2014, there has been a pressure on Dubai real estate. Property prices in Dubai have fallen between 5% to 30% year-on-year, with large five- to six-bedroom villas experiencing the biggest declines, as per Puri.
Real estate prices in Britain are also on a fall owing to uncertainty over Brexit.
Concerns about the introduction of Vacancy Tax on empty flats in Hong Kong has prompted many developers to sell empty properties, leading to the slide in prices in the market.
New York City is brimming with unsold inventory leading to a dip in prices even in areas such as Manhattan.
Perks Of Owing House Overseas
Owning a property abroad has its own perks, primary among them are good returns. When things are on a slow mode in domestic real estate, it is investment options in foreign markets that end up enticing HNIs and UHNIs.
Also, many countries offer residency status in exchange for a certain quantum of investment. While some UHNIs have business interests in the location, personal reasons like children studying abroad also play a vital role when it comes to buying property in a foreign market.