Indian Investors Maximising Returns with UK Investing
India and the UK have a long running investment history together. Even now, with the disruption that COVID-19 has had on the market, UK investing remains an appealing prospect for Indian investors.
Aside from the broad range of Indian companies operating in the UK, private sector investment continues to grow year-on-year. The number of Indian companies investing into a UK presence grew to 850 in 2021, while the two countries have already announced plans to implement a £1 billion ‘enhanced trade deal’.
The same can be said for property investment. Largely driven by the security and consistency that the UK property market can offer overseas investors, assets across the country are being snapped up thanks to the high-growth potential and relative affordability they can provide.
With Indian citizens able to withdraw $250,000 each financial year for specific transactions, more and more are looking to invest that money abroad where they can maximise returns. While some investors are purchasing stocks, mutual funds or investing in private equities, many more are looking to invest it into property.
According to Rajesh Budhrani, Co-Founder and Head of Asia for OCIM, familiarity plays a big part in why Indian investment is increasing:
“Investors from the Indian sub-continent are very familiar with investing in UK real estate, in particular the residential buy-to-let asset class and second homes. Here, the yields are generally low…”
Budhrani believes that the UK is so appealing because of the lower taxes, higher potential yields and attractive borrowing rates. On top of that, UK property is renowned for its reliability and has demonstrated consistent growth over the last two decades.
Since 2019, the London property market has been one of the top targets for Indian investment but as other markets have come to the forefront, towns across the South East have become more desirable, offering access to the capital while providing better rental yields.
Take Bracknell for example. With London under an hour away, prices in Bracknell are nearly half that of the capital (a property in Bracknell costs 38,512,491 INR compared to London’s 66,127,327 INR) but it’s providing double the average rental yield.
With Windsor and Eton on the doorstep, plus a £770 million regeneration project transforming the town, Bracknell has prestigious surroundings and huge inward investment contributing to its exceptional property market.
This has made developments such as The Grand Exchange in Bracknell a clear investment opportunity for Indian investment. While it’s an off-plan development (i.e. investors buy it before it has been built) this gives investors plenty of flexibility they wouldn’t find in a newly-built development.
With deposits starting at just £57,990 (5,909,165 INR) and no further payment required until completion (which is estimated to be two years away), an off-plan asset gives plenty of time for investors to both secure further funds and also allow the development to grow in value during build – forecasted to be around 14.5%.
As the UK’s number one rated developer on Trustpilot, we have plenty of experience in the sector and The Grand Exchange’s July project update shows how it’s already beginning to take shape. With the final product also having exclusive resident amenities such as a gym, Wi-Fi lounge and spa, it’ll be truly unique to a local market that is already seeing demand for such a product.
At the same time, as other amenities around the development – such as The Lexicon and Princess Square – also complete, this will only support further demand for the area from young professionals looking to rent.
While Indian investment is expected to continue growing as we head into 2022, The Grand Exchange remains a premium investment opportunity for investors that want to get into the market before prices rise even further.