It is no secret that Mumbai and Delhi are amongst the most expensive real estate markets in the world. The average price psf at Altamount Road is recorded at around INR80,000 (USD1300/sqft); implying a consumer has to shell out ~USD2mn to own a 1,500 square feet residential property. Similarly, real estate prices at the likes of Chanakyapuri, Vasant Kunj, GK-1, New Friends Colony and Defense Colony go up to INR90,000 square feet.
What if you get a 3-bedroom independent villa in London at US$300,000 i.e. INR1.95 crore approx.? It makes a viable proposition for those who are looking for investment properties for long-term growth. UK today offers a significant investment potential led by softening of prices and currency over the last 12 months due to Brexit.
The uncertain economic outlook caused by the UK’s decision to exit from the European Union (EU) in June 2016, has resulted in a significant correction in real estate market. To top it off, there is a greater opportunity for Indian real estate investors as Great Britain Pound (GBP) against Indian National Rupees (INR) has gone down by more than 20% in the past three years. Thus, a property for which an Indian investor had to shell out Rs 2 crore in London a year back can be now owned for INR1.80 crore!
Besides London, one should consider Liverpool as potential investment location as well. Here you can own 350 sq ft studio apartment in GBP99,000/INR85 lakh. In general, residential real estate prices in other prime UK cities such as Manchester, Berkshire, and Birmingham start from INR40,000 per sq ft.
However, buying property is not just about lucrative pricing. You should factor in at least the following points before making any decisions:
- Set clear objectives of buying properties in a foreign country. Whether you are buying it as a holiday home or a space for your children studying abroad.
- You need to conduct a thorough due diligence before making any financial transaction. You can engage experts to assist you with this critical activity. After all, you wouldn’t like to be entangled in a legal issue at a later stage.
- Also, figure out how you will be managing the property. You can hire property management firm for this purpose.
The UK is a liberal country and a home to millions of foreign nationals. As per Census 2011, there are more than 1.5 million Indians residing in the UK; that is roughly 2 percent of the country’s total population.
A right investment in the UK real estate market could be one of the most rewarding moves in your life. It is a relatively organized and transparent real estate and you can take assistance from qualified professionals who can work out the best deal for you.