Indians buying more real estate abroad: Outbound capital doubles on overseas commercial property purchase

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June 17, 2019 1:45 PM

The top destinations that have attracted Indian wealth are -- United Kingdom, Netherlands, Germany, United States of America and Australia.

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Indians are investing more in real estate in foreign countries India’s outbound capital in buying commercial property overseas nearly doubling in the last financial year said a report. Now standing at $0.7 billion, the increase has been witnessed in 12 months to Q1 2019 while the past number stood at over $0.37 billion in the 12 months to Q1 2018, the report released by Knight Frank said. The top destinations that have attracted Indian wealth are — United Kingdom, Netherlands, Germany, United States of America and Australia. Also, India is the 30th biggest capital-exporting countries, globally.

However, inbound cross border investment volumes into Indian commercial real estate stood at $2.6 billion in the 12 months to Q1 2019, falling sharply from $3.9 billion in the previous year. The inbound foreign capital into Indian commercial real estate is still about four times as big as the outbound capital.

Top 5 countries which invest in India’s real estate

According to the report, Singapore is the biggest source of India’s inbound capital with over $0.7 billion worth investment in 12-months to Q1 2019. Following it is Australia, Japan, China and Hong Kong in the decreasing order of investments. “India ranks 20th in the aspect of top capital importing countries, globally,” the report found out.

10 countries with most capital outbound

Among Asian countries, South Korea, China, Hong Kong and Singapore were the four countries which are in the global top 10 list of biggest capital exporters. United States of America topped the list with $59 billion worth outbound capital in 12-months to Q1 2019. Following it are Canada, Germany, Singapore and the United Kingdom. France and Switzerland were also among the top 10 capital exporters.

Speaking about why Indians are lured into buying real estate in a foreign land, Shishir Baijal, Chairman & Managing Director, Knight Frank India, said, “With geopolitical factors coming into play, prolonged global economic cycle and interest rate in late cycle investment is promoting cross-border capital flows. The Indian investors are increasingly looking at international commercial real estate assets to diversify risk and increase their returns.”

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