India: the new china?

"The Asian market has been hugely important over the past few years," comments Robert Gavin, Group CEO of NDD Group, which specialises in high end workforce accommodation solutions like the Transhudson Hotel – Parshall in the US state of North Dakota. "Demand remains strong and we have opened offices in both Singapore and China in order to manage the appetite there for US property purchases."

But a new contender could be on the horizon for the international property sector's affections. A recent report from the International Monetary Fund (IMF) has revealed that India's growth rate is expected to put it ahead of China within the next two years. India's domestic growth rate was 5.8% in 2014, compared with 7.4% for China, but 2015 should see the two coming much closer together, with India growing at 6.3% this year and at 6.5% in 2016.

As a result, eager property professionals are keeping an eye on Indian buyers.

"We have seen enquiries from Indian clients already settled in the UK beginning to creep up, as they look for second homes in the Algarve," comments Chris White, founding director of boutique estate agency Ideal Homes Portugal.

"It's going to be an interesting few years ahead as we see the difference that rapid economic growth and the long-awaited reforms make on Indians' desire and ability to purchase property overseas."

The enthusiasm follows the lifting of the cap on outward remittances from India and on the annual increase of the annual investment ceiling for those buying property overseas. The ceiling was increased from $75,000 to $125,000 per year under the Liberalized Remittances Scheme.

Martin Dell, director of leading Spanish property portal, Kyero.com, which lists more than 175,000 homes from 2,500 estate agents, explains: "Spain is one of the most popular countries in Europe when it comes to second home ownership by foreigners and prices here are low enough to tempt buyers from across the globe right now, particularly in light of recent currency fluctuations. The shifts in policy from the Reserve Bank of India over the past couple of years have impacted on markets around the world, but if things continue in the current vein then we should see Indian buyers having an increasingly important impact on global property markets."

During 2014, some 80,000 Indian tourists visited Spain according to figures from Ignacio Ducasse, Director and Tourism Counsellor, Tourism Office of Spain in Mumbai.

"India is a prominent emerging source market for Spain," he says. "We see a huge growth potential in the Indian market and the Indian visitor is also a high-quality long-haul tourist who stays for about seven nights and indulges in high-end shopping."

Dell adds: "There's huge potential for India to become a growth market so far as Spanish property is concerned. It's a market that companies should ignore at their peril. Just as we have seen Chinese money flood the market, it is possible that Indian money will do the same over the next decade. India is definitely the country to watch right now."