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Strategic Alliances: Unlocking Success For Indian Investors In Foreign Real Estate Ventures

Indian investors benefit from partnering with local experts in international real estate, gaining market insight, risk mitigation, and guidance on complex regulations and procedures.

Strategic Alliances: Unlocking Success For Indian Investors In Foreign Real Estate Ventures
POSTED ON February 16, 2024 12:07 PM

The global economy is increasingly becoming interlinked through trade, mutual collaborations, and other investment avenues. The associated growth has propelled Indian investors to venture into the international markets in search of more profitable investment opportunities, especially in the foreign real estate markets.  

To obtain lucrative returns, Indians have pinpointed a key policy to establish strategic alliances with provincial partners, often established real estate firms, to invest in the segment.  

These partnerships have often helped Indian investors with a plethora of benefits and assisted them in addressing challenges, assembling capital, and taking advantage of emerging trends. This has also empowered Indian investors in the dynamic landscape of real estate investments, resulting in sustainable growth and renewed interest on their part. 

Market awareness and regulatory understanding 

Establishing an association with local partners to invest internationally helps Indian investors with crucial market and regulatory knowledge. Finding the way through the complex nature of the international real estate vertical can be challenging with different legal structures, and tax and property laws.  

However, associating with experienced local bodies who are knowledgeable in the domestic field, mitigates risk and provides an ambitious edge and operational guidance concerning real estate acquisition by undertaking the necessary analysis, investigation, audits, and compliance.  

This helps streamline the entire investment procedure for Indian investors by providing appropriate knowledge of zoning laws, property taxes, or transferring titles. 

Prevailing over Capital Limitations 

Converging financial assets using collaborations remains a tactical decision that can help prevail over capital limitations. Real estate investment opportunities frequently require considerable funds, especially in premier localities.  

By joining hands with similar-minded investors or real estate corporations, Indian investors can obtain access to a significant pool of funding.  

This helps them in the seamless facilitation of real estate purchases and diversification of portfolios. These partnerships hold paramount importance to establish the financial capacity required to engage in high-value transactions of a varied type of real estate investment opportunities - from commercial to residential projects.  

Precise Utilisation of the Vast Foreign Real Estate Market 

The size of the international real estate market remains colossal and is experiencing rapid growth every year with investments from different entities. The divergent opportunities on offer by the vertical across different components remain a unique opportunity for Indian investors, who are anxious for growth and diversity in their portfolio.  

They are leveraging investment opportunities in tech hubs such as San Francisco, Seattle, and Austin where the demand for economic, commercial, and residential projects or the suburban segments. Strategic alliances with local players allow Indian investors to tap into these progressing markets with relative ease.  

Emerging Trends and Favourable Sectors 

The future projection for the Indian investors in the foreign real estate domains remains positive as sustainable development, and tech-oriented economic housing development is at the forefront of emerging trends and demands.  

Eco-friendly, energy-saving, non-polluting real estate development projects are becoming the focus of many infrastructure projects, which offer substantial return on investments (ROI) to Indian investors.  

Along with it, smart homes and related innovative ideas are also gaining traction in the foreign real estate market with a special focus on affordable housing options and Indian investors can renew their interests in the domain with proper strategic alliances, which offer benefits to both investors and local communities.  

Indian investors are also taking this opportunity to avoid the depreciation of Indian Rupees (Rs) against global currencies, such as the US dollar.  

As per a study by the Indian Wealth Report 2019, Rs has experienced a 4 per cent depreciation against the dollar per year over the last four decades. While foreign investment opportunities are a viable option for Indian investors to make up the value lost, strategic local associations are ensuring their capital is safeguarded against poor investment and offering large margins with proper due diligence in the market.  

Future Opportunities Associated with Healthy Growth 

The real estate market worldwide was valued at $3.69 trillion in 2021 and is projected to increase with a CAGR of 5.2 per cent between 2022 to 2030. This opens up a plethora of future opportunities for Indian investors in foreign real estate investment opportunities.  

Associations with local firms in the know of prospects and market dynamics offer insightful data to the Indians, who have been among the top investors in countries like the United States, the UK, and Germany.  

This market growth is owed to the increasing population and demand for affordable housing and firms with expertise in land development projects are offering lucrative returns to Indian investors looking for rapid growth and stability in the segment. 

Authored by Sumi Rengaraj, co-founder, of Ashton Gray

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