Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India:
The new restrictions by RBI with regards to Indians investing in international real estate under the Liberalized Remittance Scheme (LRS) have been introduced in an effort to stabilize the rupee. This move will have medium to long term implications.
Individuals who were planning to buy international real estate at attractive valuations and planning for their kids’ education and housing aboard will now see such plans challenged. Currently, the variety of options available on the international property market offer very attractive rental yield and valuations, making the proposition of investing in property abroad a potentially lucrative one.
However, the new restrictions will put a dampener on the sentiments of Indian investors who were considering this route.