The number of Indian students pursuing higher studies abroad is soaring year by year. It has been learnt that nearly one in two billionaires (47%) in India have invested in overseas education for their children. This figure is way above the global average, which stands at 28%, and the Asia average of 38%, according to the Wealth Report 2017 by Knight Frank. The windfall id massive and the UK is cashing in on this in a surprising segment of the economy – property purchases. Education has become a critical driver of demand across prime residential markets in the UK, according to the Wealth Report.
“Good schools are a key driver of the housing market and their presence often helps to drive local property prices. The world’s wealthy want their children to be global citizens with school careers often spread across multiple locations whilst they gain insight into different cultures and languages,” Liam Bailey, Knight Frank’s Global Head of Research, said.
Notably, according to the report’s findings, ultra-high-net-worth individuals (UHNWI) in Asia rated education at 8 on a scale of 10 among essential factors influencing overseas property buys. It also showed that prime property prices around key London schools have risen significantly over the last five years. While the average surge in property prices around top schools in the British capital was 49.5%, similar neighbourhoods in Home Counties recorded an increase of 45.5%.
The global demand for berths in UK schools has also risen over the past 10 years. The number of students from Asia joining UK public schools between school year 2005-2006 and 2015-2016 increased by 41%. Students enrolling in UK schools from India rose by 19% during the same period.
Knight Frank LLP is the leading independent global property consultancy. Headquartered in London, Knight Frank has more than 15,000 people operating from 418 offices across 60 countries.
Meanwhile, Indians registered an impressive double-digit growth of 12.3 per cent in the last one year to become the second largest group of international students in the US after China, contributing $6.5 billion to the country’s economy in 2016, a report had said.
In the 2016-17 academic year, 186,267 students from India were studying in the US, said the annual Open Doors report of the Institute of International Education (IIE) released. India is the second leading place of origin for students coming to the US, comprising 17.3 per cent of the total international students in the US, it said.
China had a total of 350,755 students, registering an increase of 6.8 per cent.
The majority of Indian students in the US study at the graduate level, the report said, adding in 2016-17, their breakdown was: 11.8 per cent undergraduate; 56.3 per cent graduate students; 1.2 per cent other; and 30.7 per cent OPT (Optional Practical Training)
Last year, Indian students in US colleges and universities contributed USD 6.54 billion to the US economy, the report said, citing a Department of Commerce figure.