Sanjeev J Aeren

From smaller countries like Cyprus, Mauritius and Maldives to big economies like the the UK, Canada, Australia and the US, there are investment opportunities everywhere in the world for Indians. Ever since the government allowed remittance of up to $200,000 by resident Indians, real estate has been the top investment choice.

I feel that the growing globalisation of the property market, with a free flow of investment and a boost in building opportunities, can only benefit us. After all, real estate has played a big role in spurring the economic growth of vibrant cities in China, India, Vietnam and West Asia.

Probably the greatest challenge facing an individual when investing in property abroad is determining what countries— and more important, what areas in those countries—are worthy of your cash.

Locations traditionally courted by Asians (including Indians) and with a substantial presence of people of Indian origin generally make sound business sense. For instance, our investment in Birmingham’s Celebration City, a concept mall with a replica of Chandni Chowk, is going to be a hit with the Indian population in the UK.

Such an investment is definitely an amalgamation of investment and need rather than luxury. As an investor I will also look for foreign properties with good returns in countries with stable socio-political climates.

Properties in demand are those with good yields such as highend luxurious condominiums, hotel condominiums or apartments and concept malls. The easing of Foreign Exchange Management Act rules and permitting investment abroad has led to investments across the globe. The liberalisation of remittance norms has also made such investment feasible.

But there are procedural hassles, mainly because of unclear taxation policies. There are no clear guidelines on how the money should be invested. There are also problems regarding remitting the money.

By Sanjeev J Aeren, Managing Director, AEZ Group