It isn’t better job opportunities alone that’s taking city techies overseas these days. Drawing them to the international market are rich-in-return property deals, a trend fast becoming popular among urban investors. Right from cities in the US and the UK to Dubai and Istanbul, Hyderabad’s IT crowd is putting their money in a range of realty hotspots.
Here’s how it works. Investors buy a piece of virtual real estate either commercial, office or residential in one of these cities for anywhere upwards of $10,000 (roughly ‘6.5 lakh). The rentals, which are as high as 11% to 14% as against a meagre 7% in India, start to come either immediately or within the next few months. The transactions are all online and in volves no hard cash.
“I first heard about an opportunity like this at a property show. I subsequently did my own research and realized that it was a great deal. I invested about $30,000 (roughly ’19 lakh) in a co-working space in Istanbul and within the next 15 days, I received my first rent of about ‘22,000,“ said Sanjay B, an IT professional from Hyderabad, listing out the many pros of such a venture. “Apart from the lucrative returns, it is also safe, hassle-free and gives you the option of exiting as and when you desire,“ the young executive said.
It is for the same reasons that Sam Verghese decided to look the Dubai way after visiting multiple residential properties in the city. “I read up about the property and found that it was much better than what any builder here was offering. Also, I was impressed with the way the entire deal was struck. It was transparent. While I also dabble in stocks, the returns from that aren’t stable. On the other hand, this guarantees 10-11% monthly returns,“ the techie said. His total investment size is around ’30-35 lakh.
City realtors attribute the rise in this trend to increased global exposure among IT industry employees. “These people are familiar with markets like that of the US and understand how it works. Considering such overseas transactions take place in a very systematic manner (everything is on paper) and have been delivering on the promised returns, which they can never expect in India, the salaried class is hugely attracted towards it. Also, it has increased the purchasing power of people,“ said Debayan Bhattacharya, associate vice president, Square Yards (Hyderabad), a global realty firm dealing in overseas spaces.
Perhaps that explains why a leading construction firm from Dubai recently shifted the site of its property show from Banjara Hills to Hi-Tec City. “There is huge demand among IT professionals who are aware of the rapid appreciation in property rates in cities like Dubai. A 400 square feet studio home, bought at ‘1.3 crore, assures an immediate rent of ‘50,000 a month.That we simplify the process of payment for our customers in India only makes the deal more attractive,“ said a representative of the company on a visit to Hyderabad.