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High net worth individuals have always been attracted to real estate as this sector brings in steady returns on investment. Real estate, however, was a victim of the economic downturn what with demand slowing down. To arrest the downturn, various world governments announced stimulus measures to enable consumers to make more purchases.
Due to the liquidity made available because of the government’s stimulus measures, several banks lowered their interest rates to cater to the demand. Various developers lowered the prices of their projects.
Ernst & Young recently released a report which stated that the improved liquidity, softening interest rates and price corrections have combined to create a positive outlook for the real estate industry in India. The report also stated that various developers are concentrating more on affordable projects rather than luxury developments which are still hard to sell in the current economic climate.
The country recently seen its GDP (gross domestic product) grow to 7.9% for the quarter July-September 2009 up from 6.1 % the previous quarter. Together with the other sectors like financing, insurance, and business services the real estate sector grew 7.7 % during this quarter.
The realty recovery being seen in the country together with the GDP growing to 7.9% does play an important role in attracting the interest of the high net worth individual. Speaking of high net worth individuals, the Economic Intelligence Unit (EIU) prepared a report, ‘Prospects for Property: On Solid Foundations?’ which was commissioned by Barclays Wealth. The report was based on an EIU-conducted survey of more than 2000 high-net-worth individuals, with investable assets ranging from $800,000 to in excess of $48 million (GBP 500,000 to in excess of GBP 30 million). The respondents to the survey were from all over the globe with the highest numbers of respondents in the United States, Hong Kong, India, Singapore, Canada, Spain, Switzerland, the United Arab Emirates, the United Kingdom and Monaco.
Here are just some highlights of the survey:-
• Over the next two years, 35% of the survey’s respondents plan to increase the portion of their portfolios dedicated to real estate, not including their primary residences.
• Of those surveyed 75 percent of respondents say that residential real estate looks attractive from an investment perspective.
• In addition, 26 percent of wealthy investors believe that real estate has better long-term prospects than other asset classes.
• Just more than half of the respondents expect an increase in the value of their real estate investments over the next two years.
• Among the real estate markets currently attractive to the HNI, the US ranked no. 1 followed by China, the U.K and India, in that order.
Conclusion:-
The realty recovery in the country and India being the fourth attractive real estate market for HNI makes it interesting to take a note of. In the backdrop of the survey’s results, Expat Properties presents to you its properties spread over Western and Southern India.
These properties are competitively priced and located amidst developments that lead to appreciation. As can be seen from the survey, 26 percent of wealthy investors believe that real estate has better long-term prospects than other asset classes. Over time as infrastructural developments make their way to / near the properties, it will lead to rise in its value and will thus bring in appreciation.
In the light of this, Expat Properties invites you to partner with us to reap the benefits of investing in real estate.
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