Indian Luxury Home Buyers Go Global

The global luxury property market has for years been filled with tales of Russian oligarchs and newly minted Chinese millionaires and billionaires. In recent years, a new player has emerged on the international stage: the wealthy Indian buyer. The most recent Candy Global Prime Sector Report ranked India No. 6 among nations in domestic and international real estate investments by ultra-high-net-worth individuals. India has become the world’s fastest-growing big economy, surpassing China in 2015, according to International Monetary Fund projections. In the U.S., India accounts for about 6% of international buyers, the National Association of Realtors reported. With annual spending rising from $3.9 billion in 2013 to $5.8 billion in 2014, India ranks behind China and Canada in total share of international buyers. New York, Los Angeles, Las Vegas, Chicago and Dallas are the most popular U.S. destinations for Indian buyers. “They’ve been somewhat off the radar, but Indian investors are the next big story,” said Jonathan Miller, president and CEO of Miller Samuel, a real estate appraisal and consulting firm in New York. “Their economy is so large and there’s such a concentration of wealth. They’re a phenomenon that’s just beginning.” Here are snapshots of how Indian buyers are influencing four global cities.

Dubai: Indians are the dominant foreign buyers in the Emirates city, accounting for 17% of buyers investing in Dubai real estate, according to real estate consultancy Knight Frank. Spending by Indian buyers has more than doubled since 2012, escalating from 8.6 billion U.A.E. dirhams (about $2.3 billion) to 18.1 billion dirhams (about $4.9 billion) in 2014. Khawar Khan, the research manager in Dubai for Knight Frank, said that Indian buyers are drawn to Dubai for several reasons, including its proximity and business-friendly atmosphere. In addition, prices remain below peak 2008 levels and compare favorably with other cities like New York, Hong Kong and London. Landing Spots: Emirates Hills, where properties can sell for as much as $180 million dirhams (about $49 million). Downtown and Palm Jumeirah are popular for those spending between $1 million and $5 million.

London: Ila Amba, the head of Knight Frank’s South Asia desk based in London, is seeing a comeback in the high-end residential market among Indian buyers after a slowdown during the past 18 months. Buyers are once again seeking out “super prime” secondary residences with “period facades and high ceilings” in the $14.5 million to $22 million dollar range. Most foreign owners in London are Indian, according to a luxury real estate report from Wealth-X and Sotheby’s International Realty. The popularity of London among Indian buyers is longstanding. “It’s easy for them to integrate into London. It’s a multicultural city and not too much of a culture shock,” Amba said. In addition to buying their own trophy properties, Indians often purchase smaller apartments for their children studying in London. Landing Spots: Knightsbridge, Belgravia and Mayfair. Up-and-coming neighborhoods include Hyde Park and Marylebone.

Los Angeles: Tyrone McKillen, a real estate agent for Hilton & Hyland in Los Angeles, recently showed a Bollywood industry executive a modern, Hollywood Hills mansion, with sweeping views of downtown Los Angeles and the Pacific Ocean. The $32 million home in the exclusive Bird Streets section was rejected by the mogul in favor of one in Beverly Hills that sold for $30 million. “The Bird Street was nicer, but the guy wanted one in 90210 for bragging rights because it’s more familiar to the global client,” McKillen says. Los Angeles is one of the most popular cities in the United States for Indian buyers, according to the NAR. While Chinese and European buyers still outnumber those from India, McKillen reports seeing about a 20% increase in the last two years of purchasers hailing from the subcontinent. “Instead of spending $4,000 to $10,000 a square foot for a box in the sky in London or New York, you get land with a pool, Hollywood and so much more for $3,000 to $3,500 a square foot,” says McKillen. “People from India are recognizing Los Angeles as a global city on the same scale as London, Hong Kong or New York.” Landing Spots: Brand areas like Beverly Hills and Bel Air.

New York: During the last six months, purchases and inquiries by Indian buyers into high-end properties have significantly increased, according to Tamir Shemesh, an associate broker for the Corcoran Group in New York. He reports selling a 3,500-square-foot condominium on the Upper East Side for about $6 million to an Indian family as a pied-à-terre. He’s recently completed three transactions with Indian buyers and has three more potentially lucrative deals in the works. “Everyone knows New York is a safe haven and Europe is lagging behind in its recovery,” said Shemesh. “They want to be in the world’s best economy and what better place than New York.” Landing Spots: The usual suspects—Upper East Side, Midtown, Upper West Side.