A recent legislation by the Indian government will boost demand for UK student investment property, according to the Mistoria Group.
The threshold for investment in real estate outside of the country has been increased to $125,000 per financial year (April-March) from the previous rate of $75,000.
Student investment firm Mistoria says the scheme can now be used for acquisition of immovable property outside India and banks are allowed to remit the funds per financial year, for any permitted current or capital account transaction, or a combination of both.
Due to low yields and high appreciation in their homeland, Indian investors are keen to look for property overseas, according to the Mistoria Group, with the UK one of the most sought after locations.
Mish Liyanage, Managing Director of The Mistoria Group, explains: “We have experienced an increase in demand from Indian Investors over the last few months, all of whom are looking for investment opportunities in student accommodation.”
“Since 2011, student accommodation has outperformed all other traditional property assets and has been the strongest growing investment property market in the UK.
“It has also continued to be one of the most resilient investment sectors, with rental incomes and property values remaining stable, or increasing. The attraction of the student accommodation sector has been driven by structural undersupply and positive rental growth year on, despite the economic downturn.
Sandeep Singh, an Indian lawyer, adds: “The UK is considered a safe market without a lot of hassles for overseas landlords looking for passive income. The UK law does not prohibit international investment from foreign nationals. To add to this, there are no legal hassles regarding title of property and the prices of real estate in Indian cities are very much comparable with prices in UK major cities.
“Since the legislative changes, the UK student market has become highly attractive for Indian investors as it offers high yields, good asset growth and hands off investment.”
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This article first appeared on the Choices Today website on Wednesday 28th January 2015.