Exploring International Markets
I had the fortunate opportunity to go abroad with a group of real estate professionals that include lenders, immigration attorneys and realtors; eager to learn and explore a quickly expanding real estate market that directly influences our local San Francisco market; India.
The Trade Mission was organized by the Asian Real Estate Association of America (AREAA), a nonprofit professional trade organization dedicated to promoting sustainable home ownership opportunities in Asian American communities by creating a powerful national voice for housing and real estate professionals that serve this dynamic market.
In Delhi, we were hosted by the New Delhi Association of Realtors; in Mumbai, we attended the annual National Association of Realtors - India Conference; and in Bangalore, FIABCI’s annual conference.
Insights - India's Real Estate Market
Real Estate, the only product in the World that keeps appreciating
In the thick of rising home values it is easy to forget the feeling of insecurity when investing in less stable markets. One message that rang true in the thriving markets of New Delhi, Bangalore and Mumbai is that Real Estate is the ONLY product in the world that continues to appreciate.
I heard this message repeatedly when discussing international trends and networking with realtors and professionals in India and neighboring countries. Not only does purchasing international property entice travel junkies and adventure seekers with the thrills of living abroad, but it makes for a sound and stable investment for the future.
Quick Expansion into the Modern Marketplace - Smart Cities Mission
Currently, the Ministry of Government and Housing Affairs has established a goal to achieve100 Smart Cities by 2020.
Along with the Smart Cities Mission, I explored the following Market Trends seen in India:
THE RISE OF SUBURBAN HOUSING
Apartment sizes are being reduced to accommodate the new wealth, smaller homes and younger generation
20% down payment is standard
India is building 18 Miles of highway every day
INVESTMENT ENVIRONMENT IMPROVING
36% increase in investing per annum
$6.1B in 2016
$7.0B in 2017
$10B in 2020
REAL ESTATE INVESTMENT TRUSTS (REIT)
Future of Investment Capital
Recently Introduced to India
Individuals (non-Indians) cannot buy homes in India
FOREIGN GOVERNMENT INVESTMENT
Japan & Singapore Gov’t are investing in India
Japan is building a new city in India
Diversification is Key When Investing in US Real Estate Markets From Abroad
In the United States we tend to see hyper-localized fluctuations in home values; one city could be appreciating, while the neighboring city could be depreciating. To minimize risk foreign investors should purchase properties in various cities. Finally, an excuse for the bi-coastal lifestyle.
Throughout my Trade Mission I was able to explore New Delhi, Mumbai and Bangalore, the Silicon Valley of India. Each of the cities had their own individual appeal, but my personal favorite to visit, for the culture, architecture and aromas, was New Delhi.
I was in complete awe of the structural composition of this architectural masterpiece. An immense mausoleum of white marble, built in Agra between 1631 and 1648 by order of the Mughal emperor Shah Jahan in memory of his favorite wife. The sheer size and symmetry of the entire site was a statement to say the least and truly radiated a lavishly royal feeling.
Perfectly exemplifying the blend of Indian, Persian and Islamic styles, there was so much attention to detail on the exterior of every façade, archway and windows. I highly recommend planning your tour at sunrise or sunset to take advantage of the amazing colors.
Flavors of India
I was already a fan of Indian food and was eagerly waiting to try the flavors of India. The positive feedback I received prior to the trip was spot on - I truly enjoyed everything I tried. Some of my favorite dishes were Butter Chicken and the grab and go snack ' Vada Pav', a Potato patties mashed with garlic, chillies and coriander are dipped in chickpea flour, fried golden, then laid in "pav" – a springy white bap that's well buttered, spread with coriander chutney and sprinkled with garlic and chilli powder. My new favorite ice cream flavors -- Rose Petal and Cardamom. Yum!
NAR-India Convention 2017
The headliner of my trip was the National Association of Realtors - India Convention. It was a great networking opportunity to network with 1300 Realtors & Developers under one roof. In addition to the conference being educational, the entertainment was a wonderful display of local culture; filled with dance and vocal performances.
Below is a reel of some of the performances I witnessed.