Roseau, Feb. 02, 2023 (GLOBE NEWSWIRE) -- India has seen an exponential rise in high-net-worth individuals over the past decade. As the economy continues to grow and more investment opportunities become available, India is seeing a rapid increase in its wealthy population. With this growth come new challenges, such as how to best manage wealth and capitalize on new business opportunities, but also great potential for those looking to succeed as global citizens.
The rise in wealth and wealth management is also seen in India’s younger generations. According to a report highlighting some of the findings of the Millennial Mood Index, more than 84% of millennials across India have stepped up their wealth management strategies to prepare for future contingencies. Of the respondents, 13% have committed to more extensive investment programmes, while 52% and 35% have chosen to focus on scaling up their savings and purchasing comprehensive health and life insurance plans, respectively.
Knight Frank's research suggests that Indians own an average of 5.1 residential properties while the global average is 4.2 units - a stark difference that should be taken into account when assessing real estate investments in India and abroad. Following the research, Indian UHNWIs allocate a large chunk of their wealth to primary and secondary homes - approximately 37%. The rest (15%) is invested in residential property held abroad.
Buying property abroad
Investing in foreign real estate can often yield higher returns than domestic investments, due to attractive currency exchange rates. With the rise in disposable income, Indians are showing an increased willingness to invest in overseas property. This can be an attractive option as it provides risk diversification. There are many factors that can influence the attractiveness of a yield, including local market conditions, exchange rates, and taxation laws.
The potential gains from foreign real estate over the lifetime of the investment are threefold: the core value of the asset, rental yields, and global access and mobility—the ultimate hedge against market, regional and political volatility.
Many wealthy Indians are also looking to purchase luxury homes abroad. Luxury homes are often seen as a symbol of success and are becoming increasingly popular, especially among millennials. People buy luxury homes for a variety of reasons including the need for more space, security, prestige, and the desire to have a home with modern amenities. While luxury homes come with a matching price tag, many investors feel that the benefits outweigh the costs.
Real estate in Dominica
Investing in real estate that is connected to investment migration programs gives families the opportunity to explore different options for where they can live, work, learn, and eventually retire.
Since the establishment of its citizenship by investment programme in 1993, the Commonwealth of Dominica has been internationally recognized for its outstanding programme and many affluent Indian families have looked to this island for real estate investment opportunities.
It ranks as the number one programme of its kind for six consecutive years by the CBI Index. This is a ranking system published by the Financial Times’s Professional Wealth Management (PWM) magazine. Successful applicants obtain citizenship for life, with the right to live and work in the country.
Dominica also offers increased global mobility and access to many countries worldwide, with physical proximity to the North American markets for those with business interests. Successful applicants maintain the right to hold dual citizenship and citizenship can be passed on to future generations.
Government-backed property developments offer unique opportunities such as investing in hotels and luxury resorts. As part of the citizenship by investment programme, selected properties must be held for a minimum of three years and must be purchased for a minimum of US$200,000.
The Cabrits Resort & Spa Kempinski Dominica is a five-star resort located within one of Dominica's pristine national parks, only 34kms from the airport, with a secluded spa, four restaurants and bars, an art centre, two tennis courts, four swimming pools, a gym, a high-tech conference centre, and a wedding hall.
The Residences at Secret Bay, named as Travel and Leisure’s No #1 Resort in the Caribbean, Bermuda, and The Bahamas for 2022, is one of the most deluxe offerings in Dominica.
Jungle Bay is a nature-inspired luxury escape. When purchasing a Jungle Bay Villa, investors can choose to have the villa managed and marketed by the hotel. This offers investors hassle-free maintenance with no out-of-pocket cost to owners. Jungle Bay has also been ranked by TripAdvisor as the top hotel in Dominica and the third-best hotel in the Caribbean.
Tranquility Beach Resort – Curio – A Collection by Hilton is an authorised citizenship by investment project that celebrates privacy and individuality as the hallmarks of these nearly completed fully-serviced premium vacation villas and residences.
The Cabrits Resort & Spa Kempinski Dominica is a five-star resort located within one of Dominica's pristine national parks, only 34kms from the airport, with a secluded spa, four restaurants and bars, an art centre, two tennis courts, four swimming pools, a gym, a high-tech conference centre, and a wedding hall.
