Buying a home in London is better than Gurgaon or Mumbai. Here’s why

A home isn’t just where your heart is. It’s also where the biggest investment of your life lies. And hence the decision to buy one needs to be carefully taken.

And, in a bid to help consumers make smart choices, Redrow, a British real estate firm, is opening up to Indian investors. With a variety of projects in and around London suburbs, this firm is offering great investment options for Indians looking to buy a home abroad.

Buying a home abroad can be an affordable option as properties in most-sought after locations within Indian metros have become enormously expensive. Moreover, interest rates for bank loans are already proving to be a stumbling block and may rise further with the future revision of RBI norms. In comparison, an Indian wishing to buy a property in New York, London or Singapore can avail considerably lower interest rates of local banks in those countries.

Also, many foreign property markets are more transparent than our own, so investors can get 'clean' deals much faster and easier. Investment in property abroad makes sense for those who are employed or have business interests in the country of choice.

Moneycontrol in a recent chat with Jonathan Lebrett, Associate, International Project Marketing, Knight Frank, understands why Redrow is so curious to attract home buyers in India for their projects in London.

A. With the growth in the UHNWI (ultra-high net worth individuals) population in India, investment overseas is also on a rising trajectory. Better quality of life, business opportunities and better tax environment are some of the top reasons for Indians looking at investing abroad.

The West Works project by Redrow is based in Southall, which will see a significant reduction in commuting time once Crossrail trains are in operation in 2019. As of yet, there has been very little development activity in the area, but there are a number of large projects in the pipeline that will enhance the area’s amenity offering, as well as delivering new homes.

A. Between 2018 and 2022, we have estimated 25% as per our Hot Spot Report. This timeframe encompasses the opening of the Queen Elizabeth Line (Crossrail). In many cases the opening of the high-speed rail link from the end of next year has already been priced into sales values in and around station hubs. The level of development and regeneration set to take place around the station indicates that Southall has the potential for price outperformance relative to the local area.

A. Stamp duty which is calculated at an escalating rate, Attorney Fees, Service Charges, Ground Rent.

A. India is one of the major drivers of UHNWI population growth in Asia, which is a bright spot in the global landscape. At 71%, India shall record an accelerated growth in UHNWI population during 2017-2022 compared to an already high 56% growth witnessed in the past 5 years. We have observed that children’s education and use of property as a second home are the primary reasons for resident Indians to invest in a residential property in the UK.

A. We’ve been to the Far East so far and sold to the local market as well.

A. In Southall, Redrow is the first developer in the area so now is the time to invest before the prices start to increase.

A. There are three projects in the pipeline and the completion dates are: Q1 2020 (Ashwell), Q4 2019 (Bradney) and Q2 2019 (Chantry)

A. This project offers a 25 year membership to a car club. There will be a gymnasium on the ground floor which will be operated by an external company. We want to provide buyers with a luxurious modern lifestyle, hence the focus has been on spacious rooms and high specification apartments, which will offer a great value whilst keep the service charge as low as possible.

A. I would certainly recommend them to invest in London as it has always been a favourite destination for Indian property buyers due to several reasons; secure property tenure, safety, lifestyle, culture and education.

As per the latest Knight Frank London Report, London attracted more overseas capital than any other global city which augurs well for investors who typically look at diversifying their portfolio.