Indians Invest $5.8 Billion In The US Real Estate In FY2014

Favourable exchange rates and affordable home prices influenced many Indian buyers to make real estate investments in the US. According to a latest report by National Association of Realtors, Indians have spent $5.8 billion in FY2014 to purchase properties in that country. This is approximately 6% of total international sales.

As per the report, China tops the list of foreign nationals with $22 billion in real estate investment for the one year period ended March 2014. China is followed by Canada ($13.8 billion), India and Britain with $5.8 billion each and Mexico ($4.5 billion).

Indian buyers are locating in urbanised areas and states that are home to IT companies such as California, New York and North Carolina, said the report.
The report also said, within markets in an individual state, it is not unusual to find concentrations of people grouped by nationality. Buyers take many factors into consideration when deciding where to purchase abroad and shared experiences have a major influence over their decisions.

Indians mostly purchased single family detached homes, but about 6% bought for commercial/rental use. The properties were mostly in the suburban area and intended for residential and longer-term use, the report said. As per the report, Los Angeles, Las Vegas, Chicago, Dallas, and New York were the five markets of greatest interest to potential Indian buyers.

The dollar volume of residential purchases by residents and non-residents is estimated at $92 billion for the 12 months ended March 2014, registering a 35% growth from the previous year. This also accounts for approximately 7% of total existing home sales of about $1.2 trillion over the same period. (Image: Thinkstock)