Demand for indian property reaches 11-month high
- India in TheMoveChannel.com's Top 10 countries for first time since 2012
- Indian property's share of enquiries at 11-month high
- Demand for property in Portugal and Spain at highest levels seen this year
Photo: A Kap
US property remains the most popular country on TheMoveChannel.com. Its share of enquiries increased for the second month in a row in October 2014, rising to make up one in six (17.15 per cent) of all enquiries on the site. US real estate has now been the top real estate destination on the portal for 16 months in a row, indicating its continuing long-term appeal.
Portugal and Spain are the main drivers of investment activity, fuelled by improving confidence and affordable house prices. After seeing their enquiries surge 39 per cent and 46 per cent quarter-on-quarter in Q3 2014 respectively, the European favourites saw investor interest climb even higher last month.
Portugal and Spain accounted for 9.04 per cent of enquiries apiece, their highest share of enquiries in 2014 so far. Together, the two made up 18.08 per cent of activity, more than the whole of the US.
Interest in property in Brazil, Italy and Turkey declined in October, as investors turned towards other, less traditional destinations. Thailand re- entered the top five countries on TheMoveChannel.com, behind fourth place France, but the Top of the Props chart saw some significant changes compared to previous months. Interest in Canada quadrupled, taking the country up to the sixth spot, while South Africa climbed 35 places in the chart to sit in 11th place. Australia also rose 27 places to occupy the 16th slot, just above the UAE (17th) and below Cyprus (14th) and the Bahamas (15th).
India saw the biggest surge in demand, though, as the country's share of enquiries increased to 1.68 per cent. That small percentage marked an 11-month high in interest, enough to help India leap six places into the top 10 for only the second time since Top of the Props records began.
The last time India was in the top 10 was March 2012, when it accounted for 2.06 per cent of enquiries. Since then, buyers have mostly looked at other markets. After a year of hovering inside the top 20 destinations, though, India's appeal has steadily increased. October marked the fourth month of rising demand in a row, with the country's share of enquiries now at its highest since November 2013.
The rise in interest occurs during a positive period for Indian real estate. Since Narendra Modi's election victory this year, renewed confidence has sparked an economic rebound: GDP growth slowed down to 4.4 per cent in 2013, the lowest in 10 years, but the economy is now forecast to expand 5.4 per cent by the end of 2014.
Raj Dhindsa, Managing Director of PROPERTY FINDER R US, comments: "The Indian property market is heading for a good recovery now after a slowdown. The Change of government has made people think more positive and couple that with the weakness of the Indian Rupee, the Indian property market has again become very attractive for NRI (Non Resident Indians) investors who have mostly put investing in India on hold for last couple of years. The construction cost in India are going up more than twice the rate of inflation which itself is 10% to 15% annually. So any property bought in India now is only going to go one way.
India's improved appeal to overseas investors is accompanied by a rise in activity from non-EU investors. The number of buyers in the UAE visiting TheMoveChannel.com, for example, has doubled in the last year, while visitors from Turkey have tripled.
TheMoveChannel.com Director Dan Johnson comments: "The majority of TheMoveChannel.con activity is being driven by Portuguese and Spanish property, which appeal to lifestyle buyers from a wide range of countries, especially the UK. But non-EU investors are playing an increasingly decisive role in international property, with buyers from China and the Middle East investing in Australia, the US and other markets. As India's economy rebounds and confidence in its real estate increases, the country is climbing higher on investors' radars. India's rise into TheMoveChannel.com's Top 10 without any concerted marketing activity or property launches shows just how high it has climbed."