Cashing in on the real estate crash in the US, rich Indians are busy snapping up American properties. Affluent Indians are among the top five international buyers busy scouting for plum deals, confirms US realtors association.
“During the last 12 months ended March 2012, Indians, residents and non-residents, have bought 12,000 homes in the US,” says Ms Stephanie Singer of the National Association of Realtors (NAR), a US industry body. Leading the list of foreign buyers are Canadians, Chinese, Britons, Indians and Mexicans with most buys reported in Florida, California, Arizona and Texas.
US real estate prices have dipped by almost 26 per cent over the last decade. Between 2006 and 2011, average yearly median price of US houses has declined from $222,043 to $164,542, confirms NAR data.
“The trend has become prominent for over a year now as buyers see more value for money in such buys,” says Ms Kalpana Murthy, associate director at real estate consultancy firm Cushman & Wakefield.
The US market is also conducive for buyers who get home loans for as low as 3-4 per cent.
“High rental rates in the US and the growing tendency among more Indians to settle down in the US are fuelling such buys,” Ms Murthy explains. However, the trend is still restricted to affluent Indians.
There is also an emotional angle. “With my only daughter settled in Texas, we saw no reason to stay all alone in India, especially after the birth of my grandson,” says Ms Kamala Vaidyanathan, who recently moved to the US.
NAR sees US housing sales to foreigners to continue for now.