Home Rentals Residential The 5th Largest Residential Property Buyers In The USA Are Indians

The 5th Largest Residential Property Buyers In The USA Are Indians

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The 5th largest residential property buyers in the USA are Indians

The clouds may look gloomy for the NRIs in American but that has not stopped them from investing in real estate. In the last financial year alone, 2016-17 properties worth $7.8 billion were purchased, making Indians the fifth largest investor in real estate in the US. The properties were either purchased as a residence or for a child studying in the US.

The Chinese made the first place with purchasing residential property worth $6.1 billion followed by Canadians, British, Mexicans and, then finally Indians.

Looking at the previous year, April 2015 and March 2016 Indians invested $6.1 billion and stood at the third place on the list of buyers. However, with the rise in investment from other countries resulted in Indians slipping to the fifth position in 2016-17. According to the report 2017 Profile of international activity in US residential real estate released by the National Association of Realtors (NAR), buyers from China, India, and Mexico were working and living in the USA while most buyers from Canada and the UK were non-resident buyers.

While more than a third Chinese buyers bought their properties in California, Indian buyers did not concentrate in any one state. Indians investments were based on the location of resident’s job. Kentucky, Texas, New Jersey, Massachusetts, and California were top destinations, more than two in five Indian buyers purchased in another state.

Foreign buyers purchased $153 billion of residential property in the US between April 2016 and March 2017 in total. This is a staggering 49% jump from the $102.6 billion investment in the previous year. When it comes to the number of units bought, the year 2016-17 saw foreign buyers purchase 2.84 lakh residential properties. Almost 32% jump from the previous year with 2.14 lakh properties. The average purchase price of properties bought by Indians was $522,440.

NAR’s chief economist, Lawrence Yun said, “The political and economic uncertainty both here and abroad did not deter foreigners from exponentially ramping up their purchases of US property over the past year.” He added, “While the strengthening of the US dollar in relation to other currencies and steadfast home-price growth made buying a home more expensive in many areas, foreigners increasingly acted on their beliefs that the US is a safe and secure place to live, work and invest.”

Even though the strong dollar makes it more expensive to buy properties in that country, the fear of local currency further weakening has lead foreign buyers to accelerate their purchase.

The Indian rupee depreciated by 2% against the dollar over the entire period of the survey.

Also Read: U.S. Housing Recovery Intact Despite Drop In New Home Sales

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