(Mint, April 29, 2011)
Like their counterparts from developed nations, affluent Indians too dream of owning a second or a third property beside the sea or scenic hills around the world. Over the past two decades, demand for a second home in a foreign land by wealthy Indian buyers has been a central driver of residential price growth in Europe, the Caribbean region and North America, says The Wealth Report by Knight Frank and CitiBank.
Real estate markets across the world have shrunk in the past few years, owing to the global meltdown. As a result, there are few domestic buyers and property prices are lower. And that can be seen as an investing opportunity.
However, prices can’t be the only factor to be considered when investing in a foreign property that you may not be able to track at all. There are risks of fraud and misuse of your premises in your absence. But the good news is there are various other factors that make the proposition more attractive for you. Here is why some of them may work for you, how to make your deal risk-free and how to go about it.
Jones Lang LaSalle’s transparency index, which ranks 81 countries according to transparency in real estate transactions, has Australia on top. Sweden, Denmark, Belgium, Ireland and Netherlands are among the top 10 most transparent markets in the world.
Indian tier I cities rank 41 on this index and comes in the semi-transparent category. The survey was first conducted in 1999 and is updated every two years. The survey considers factors such as performance measurement, market fundamentals, regulatory and legal environment and transaction process.