Foreign Nationals

Why Indian investors want to buy property in the U.S

By Milo

February 13, 2024 6 min read

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Why Indian investors want to buy property in the U.S

The wave of Indian investment in the U.S. real estate market is transforming into a significant force. With Indians representing 7% of all international buyers and pouring $3.4 billion into residential properties in 2023, their growing presence is a testament to the U.S.'s strategic advantages. This shift reflects not just a search for better returns but a keen eye for opportunities that align with their long-term investment goals.

The Indian vs. the U.S. Real Estate Market

When comparing the real estate investment landscape between the U.S. and India, the contrast in rental income potential stands out markedly. In India, cities like Mumbai and Delhi see property prices per square meter reaching up to $7,659.12, with monthly rents for a one-bedroom apartment in these cities hovering around $573 and $240, respectively. This starkly contrasts with U.S. cities like Los Angeles, where the price per square meter is $4,740, yet the average monthly rent is $2,100, showcasing a higher return on investment for comparable or even lower property prices.

Furthermore, the U.S. cities like Chicago and Philadelphia offer an even more compelling case for Indian investors. With prices per square meter at $1,950 and $1,780 respectively and average rents at $1,777 and $1,563, the rental yield in these U.S. cities far surpasses that of Indian counterparts, even where the purchase prices are similar. This data underscores a clear advantage for Indian investors in the U.S. market: the ability to secure higher rental incomes for properties priced within a similar range, making the U.S. a significantly more attractive investment opportunity combined with its economic stability and growth potential.

Where Should Indian Investors Invest in the U.S.?

California emerges as the top investment destination for Indian investors, attracting 20% of their investments, thanks to its strong economic growth, technological hub, and quality of life. Pennsylvania and Texas also rank highly, reflecting a broad interest in states offering economic opportunities, educational institutions, and lifestyle benefits. These states not only provide a solid foundation for investment but also cater to the preferences of Indian investors looking for urban and central city properties.

Explore Investment Opportunities in the U.S. Real Estate Market

The U.S. real estate market presents a lucrative opportunity for Indian investors, offering a combination of affordability, diversity, and potential for high returns. With 65% of purchases made for primary use and a considerable portion for long-term residential rentals, Indian investors are not just seeking profit but also value and stability. The preference for all-cash purchases and urban areas further indicates their strategic approach to investment in the U.S. market. As the trend continues, the U.S. real estate market stands to benefit significantly from the influx of Indian investment, enriching the market's diversity and strengthening cross-border economic ties.

The opinions expressed in the Blog are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security or investment product.

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