Well-Paid Expats Bound To Fall For Indian Real Estate's Many Charms
If the stubborn slowdown in India’s real estate sector is making you lose your belief in the potential of the country’s megacities, you are certainly letting negative emotions carry you away from reality. Let some facts assist you to move back on the track of optimism.
According to the latest report by HSBC Bank International, financial capital Mumbai has topped the global ranking for expats salaries in a list that includes 52 cities. The position was previously occupied by Switzerland’s Zurich which has this year fallen to the third spot.
According to the HSBC Expat survey, top honchos that move to Mumbai, the most populous city in the subcontinent, earn an average annual $217,165 in salary, more than double the global expat average of $99,903 an annum. The report also points out that India's financial capital has the highest percentage of expats sent by the employer; the lucrative relocation packages offered to them explain their impressive earnings. Shanghai (4) , Jakarta (8) and Hong Kong (9) are other Asian cities that have joined Mumbai in the list of top 10 cities.
However, Mumbai and its other Asian peers lag when it comes to providing job opportunities. That list is dominated by cities of the US and the UK. While the top position is held by San Francisco, London and New York stand at second and third places, respectively.
How does this help Mumbai real estate?
Mumbai is among the most expensive property markets in the world. That did not stop buyers from investing in the city—while sales did decline, data available with PropTiger.com show Mumbai was among the cities that witnessed the lowest fall in Calendar Year (CY) 2017 when compared to CY16.
This may be changing soon, though.
"We had major transformative reforms. Any economy will suffer when you have the Goods and Services Tax, demonetisation, the real estate regulator or the Insolvency and Bankruptcy Code. Such reforms do create short-term pains, but in medium-to long-term, there will be gains. I am very bullish and optimistic now," said HDFC Chairman Deepak Parekh on the sidelines of the recently concluded Maharashtra Investors Summit. "Navi Mumbai is the new growth area now. With a new airport and other infra development, I am very encouraged by that," Parekh added.
This is strictly speaking of domestic investments. Why would expats invest in Mumbai real estate? Property in India, when compared to other major countries, is far more affordable. Even if you are employed at a much higher salary in say, Hong Kong, it might not be easy buying property in that country. In such a situation, Mumbai looks like an easy choice, considering the city’s luxury market segment offers you internationally renowned brands such as The Trump Organization.