Thursday, August 08, 2013

Indians on a house purchasing spree in UK

The Indian economy may be experiencing a severe downturn but that isn't hurting the money-bags. Wealthy Indians are buying up houses in Mayfair, an exclusive neighbourhood of London, the Economist reports, paying up to $5400 a square foot (Rs 33 lakhs). That would translate into a cool Rs 65 crore for a 2000 sq foot house. Not a big deal, considering that housing doesn't come cheap in India either and the prices in Mumbai would not be much lower:

Last year almost a quarter of the houses and flats that sold in Mayfair were bought—for up to £3,500 ($5,400) per square foot—by Indians, according to Peter Wetherell, an estate agent, making them the second biggest buyers after Britons. Russians and other Europeans, whose lust for prime London property is more often blamed for pushing up prices, were responsible for a similar proportion between them.
Early in the morning, St James’s Park resembles Lodi Gardens in Delhi or the Hanging Gardens in Mumbai, such is the procession of well-heeled Indians perambulating around it. They are overwatched from the Mall by the lavish quarters of a family of ex-India industrialists, the Hinduja brothers—bought from the queen and renovated at an estimated cost of £50m.
The Economist worries that while the Indian rich may be investing in property in the UK, they don't seem to be much interested in investing in business nor is trade with UK picking up. 

1 comment:

ideatingfreak said...

$5400 = 3.3 lac, not 33 lac.

Therefore, 6.5 crore and not 65 crore.