There is a reason why millionaires love buying houses overseas!

Ultra rich individuals in emerging economies including India are interested in buying a second home outside their own country, according to a report.

Two trends were fueling the rise in the number of ultra wealthy individuals who are buying luxury homes - firstly as safe investment diversification and second as part of a programme to gain citizenship or residency status in foreign nations.

According to a study by Wealth-X and the Sotheby's International Realty, Ultra High Net Worth (UHNW) individuals in the BRICS group of nations prefer to own luxury property overseas largely owing to concerns like market fluctuations, business considerations and political upheaval.

UHNW individuals are defined as those with at least $30 million (about Rs 200 crore) in assets.

"Around 12% of second homes purchased by emerging market UHNW individuals (those who reside in BRICS nations) are located outside their country of residence," the report said adding that this "number that is likely to rise in coming years". BRICS comprises Brazil, Russia, India, China and South Africa.

It added that recent stock market fluctuations in these nations are leading a new generation of UHNW investors to consider investing in luxury residential real estate in Western markets.

"UHNW individuals from Brazil, Russia, India, and South Africa are pursuing opportunities for stable residential real estate investment growth in major urban hubs abroad. Their decisions are driven by a largely similar set of concerns: market fluctuations, business considerations, and political upheaval," the report said.

Globally also there is an uptrend as the UHNW Residential Real Estate index, tracked by Wealth-X, rose to 115.2 in the second quarter of 2015, registering a rise of 8.3 per cent over last year.

"The continued rise in the index reflects the confidence of UHNW individuals to invest in luxury residential real estate," it said.

(Image: Indiatimes)