Assetz® News - India offers best "no risk investment"

India offers best "no risk investment"

23rd April 2007 |

Those looking to invest in property beyond Europe may not have considered India, but now, according to Hena Kishore, a property consultant for Sternon, they should.

India is, after all, is a dynamic, emerging nation which is increasingly flexing its muscles economically, politically and culturally. It's the largest democracy in the world, with a population of over one billion, exceeded only by China. Its technological base is expanding rapidly, most notably in cities like Bangalore. Bollywood films have become a huge export industry, the populace is becoming rapidly more educated and, above all, its intelligentsia are said by many to have a far more optimistic view of the future than westerners. As the Foreign Office (FCO) website puts it, "India now has a burgeoning middle class and has made great strides in fields such as information technology" as a result of a process of widespread economic liberalisation begun in the early 1990s.

With rapid economic growth, one might expect the property market to be thriving. And so it is, says Ms Kishore: "India is emerging very strongly as a property market… the economy is really growing and people do want to invest in this country at this point in time."

She added that areas best known to westerners, such as tourist honeypots and major commercial centres, were the most popular for investors.

"India is a very popular holiday destination, people love visiting areas like Mumbai and Goa especially, she said.

"I think Goa is very popular. Apart from being a holiday destination, people want to invest there because they know the economy of India is rising. Everybody wants to invest and get good returns off it and at this point in time I think India is the best place to do that," she added.

So far, so good, then. A popular destination, offering culture, wildlife, scenery and beaches along with a growing economy sounds like an ideal recipe for success. But is it all too good to be true? Are there not legal pitfalls, loopholes, impossible bureaucracy or other perils waiting to trap investors?

Not at all, insists Ms Kishore: "It's completely safe and there are deeds and contracts and purchase agreements which are exchanged between the developer and the client … so there's absolutely no problems in purchasing a property in India."

The FCO website adds that Britain's trade with India has doubled since 1993. In such circumstances, one might well ask - If so many other areas of economic activity between the countries are growing, why not property? If the situation is as promising as Ms Kishore states, India offers a wonderful investment opportunity.

Stuart Law, managing director of Assetz Plc and with an Indian property division, Assetz India, points out that Goa as with all of India limits purchasers of smaller property to those who are PIOs (persons of Indian origin) or NRIs (non-resident Indians) and anyone wanting to invest in India otherwise should consider property funds such as those being launched by Assetz India and Assetz fund management Limited. Investors should approach their IFA for more details of these Assetz funds.