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29 March 2024

Ultra-rich Indians prefer property in?

Published
By Parag Deulgaonkar

Dubai’s Burj Khalifa district is among the favourite global locations for India’s ultra-high net-worth individuals (HNWIs) to own luxury residential properties, says a new report.

“Not only are ultra HNIs gobbling up luxury homes in India, they are also looking at foreign destinations such as Dubai,” Kotak Wealth Management and CRISIL Research said in their ‘Top of the Pyramid 2013: Decoding the Ultra HNWI-India’ report.

Other areas on their list are Kensington, Belgravia or Holland Park in London and Nassim Road in Singapore.

Today, a luxury home is a status symbol for the ultra HNWIs who go great lengths to ensure exclusivity.

Factors such as brand aspects relating to the architect/developer, architectural significance, amenities on offer– anything that offers a chance at exclusivity becomes a swing factor in the purchase.

“Driven by greater globalisation, comparable valuations overseas and investment considerations, more and more ultra HNIs are purchasing luxury properties abroad in places such as Singapore, London and Dubai,” states the report.

Emirates 24|7 reported in July, stating Dubai Land Department figures that Indians were the top expat investors in the first half of 2013.

They purchased properties worth over Dh8 billion, compared to Dh9 billion they invested in 2012.

Close proximity to India, price rationalisation and higher yields are the prime reasons driving Indians to buy properties in the emirate.

Location, location and location

The choice of location, according to the Top of the Pyramid report, is the single-most important factor driving the ownership of a luxury homes.

“The choice of location is paramount because a luxury home is a status symbol and represented exclusivity.”

So, what is making overseas luxury property purchase decision easier?

Currently, valuations in Indian cities such as Mumbai and New Delhi are so high that they are at par with valuations in some of the top global property locations.

Mumbai has been rated among the most expensive cities of the world with Knight Frank report stating prices in Mumbai are now comparable to property prices in the US and Europe.

Dubai prices, the UK-based consultancy group, says are much more affordable among the top global cities in the world.

Read: Dubai more affordable than Monaco, Hong Kong, Mumbai

Though Dubai has increased property registration fee to 4 per cent from 2 per cent since October 6, the UAE still levies some of the lowest property purchase taxes and charges on prime properties worldwide.