A Guide to India Property Investment
India is a stunning nation of mystery and wonder that has drawn many a soul to its shores for everything from business and study to adventure and tourism. Property investors here find that India’s political stability, natural attractions and booming economy make buying property in the nation very attractive.
With its sustained tourism industry, international attractions, corporate headquarters and a wild landscape that is virtually second to done, the reasons why India has been popular and is likely to remain so are quite evident. We at Nubricks.com would cite the following 10 reasons as distinct forces driving investor confidence in India’s property market: -
1) India’s Stable Government Structure Fuels Property Investor Confidence
India is an independent Commonwealth country governed by a parliamentary system with a cabinet and the overall system is not unlike that found in the UK. India’s parliament is overseen by a president, and a democratic election process takes place to herald in changes in party leadership. The familiarity of the system is very comforting for investors who want to be able to understand what happens on the local political front where they buy. The Economist predicts that the United Progressive Alliance government, led by the Indian National Congress party will likely remain in place at least until 2009. The political climate has its ups and downs, but overall India remains very stable at its core. This is a great confidence booster for investors looking to buy property in India.
2) Booming Economy is Very Attractive for Investors in India’s Property Market
India’s economy is best described as being in a boom state at the present time. As major corporations open up shop within the country’s boundaries and more buyers and renters make their way here from foreign destinations, the environment is ripe for property investors. The Indian economy had a GDP of USD 797 million in 2005-2006, its annual growth rate of 8.4% has been topped in 2007 with reports of more than 9% growth in the first part of the year and inflation is at a fairly low 5.6% level. Industries that drive India’s economy and bring business into the country include chemicals, textiles, steel, leather, tourism and gem and jewellery crafting, and the country’s main trading partners include the UK, USA and China. The upswing in the Indian economy is very good news for real estate investors who want to buy in a thriving economic climate where there is massive potential for growth and overall development.
3) Tourism Drives Investment Returns for Property Buyers in India
The legendary sights of India are very attractive for world travellers who want to visit exotic destinations. Although India has long been a favourite for British holidaymakers, tourism from other countries remains strong as well. As the Indian government markets the history, beauty and incredible eco-tourism possibilities the country has to offer to potential visitors from all over the globe, investors are finding their property purchases in India pay off well with rentals to holidaymakers. Depending on the location of a purchase, real estate investors in India can see returns on rental properties of more than GBP 1,000 per week during peak travel periods.
4) Strong Investment Returns are Highly Attractive for Property Investors in India
The demand for property in India has been high for quite some time. Supply tends to be keeping pace rather well, but investors here will find the potential return on investment is high. Rental yields in the commercial arena for example can hit up to 10.5% according to the Indian Property Show. The residential market also promises high returns for investors. With more corporations opening headquarters here and a steady stream of millions of tourists arriving each year, rental incomes on everything from city based flats to holiday villas tend to make investors rather pleased with their investment returns! Values on the residential market have been and remain on the upswing, as well. This means buying property and holding it before reselling at a higher return is also more than possible. The overall stability of the property market makes India very attractive.
5) Low Interest Rates Make Buying Property in India a Favourite for Investors who Require Financing
Buying property in India is generally a fairly easy proposition, this of course delights investors who do not want to deal with the red tape found in many other investment hotspots. Investors in India have their confidence boosted even higher by the relatively low interest rates locally as well. Additionally, the ease of finding property for sale and the fact that the economy is booming are plus points in India’s favour. And with more jobs and higher salaries being enjoyed locally comes the potential to market buy-to-let properties to locals as well as holidaymakers.
6) Diverse Geography Attracts Visitors and Buyers, Making Property in India a Sound Investment Choice
Bordered by the Arabian Sea and the Bay of Bengal, India has more than a little coastline to show off! Add to this the legendary Himalayas and the extreme breadth of potential for property investors becomes quite clear. Buyers in India can find ideal ski resort property as easily as they can locate beach-front villas, and in addition to these natural features India is also famous for its lush jungles and bustling cities. Diversity is delivered when India is the location for property investment, in other words, the breadth of possibilities makes India very attractive for investors who desire plenty of property based options.
7) Favourable Exchange Rate Means Real Estate Investors’ Money Goes Far in India
The present exchange rate between the British Pound and the Indian Rupee is very attractive for British investors. For example, 1 GBP equates to more than 81 INR and the property prices in India are highly attractive especially when the exchange rate is considered. It is more than feasible to buy quality off-plan property even in the most in demand locations for well under GBP 100,000 and in most locations prices start from as little as GBP 20,000.
8) Low Cost of Living Delivers Expats And Retirees To India and Provides Investors with an Exit Strategy
Although some things in India cost more than they might in the UK or US for example, the overall cost of living is considered much more affordable. Clothing, food that isn’t imported and other lifestyle and day to day necessities tend to cost a great deal less in India and with the exchange rate favourable to the pound, Britons who buy or let property in India tend to find their incomes go far further. While this in itself is very attractive for investors who want to buy to let, it also means they have a guaranteed exit strategy if they target incoming purchasers of retirement or holiday property in India.
9) Ease of Accessibility a Plus for Property Investors in India
Getting to India from just about anywhere in the world is very easy. The country is home to more than 20 international airports and a host of smaller runways as well, and this is a major confidence booster for investors who want to make sure holidaymakers can find their way to their properties easily and affordably because some airlines even offer reasonable rates for tourists flying into and out of major European airports to international airport destinations within India.
10) Indian Climate Appeals to Tourists and Expats, Driving Investor Assurance High
India’s diverse geography gives way to a climate that suits every imaginable taste among holidaymakers and expats and to say there is a single climate for the whole nation is incredibly inaccurate! Those who buy, visit or relocate here will find India offers everything from desert to alpine weather - the northern region of the country is known for its colder temperatures, but the southwest is famous for its tropical zones. Overall India does enjoy a full four-season climate with cold winters and balmy summers possible, and some areas deliver up very unique weather patterns. The diversity of climates makes India as perfect for those who want to enjoy skiing in the winter as it is for those who want year-round warm weather - again providing a property investor with choice.
Property investment in India is a hot proposition that is showing no signs of cooling. As the economic boom continues, more international corporations make their presence felt in India, employment booms and tourism increases, the attraction of the nation for property investors is likely to continue.
