Own a slice of Singapore

A second home in Singapore, or even London, may not be a far cry for a Calcuttan anymore. With property prices almost catching up with other metros, the city is no longer considered the poor cousin in real estate.

“Calcuttans who have money to spare are no longer content with another house in Goa or Alibaug. They have been eyeing properties abroad for a long time. You’ll be surprised to know that not only businessmen, lawyers and doctors, too, are keen to buy properties in places like Dubai and the mecca of real estate, London,” said a city-based industrialist, refusing to be named.

And why not? Penthouses and villas in Calcutta built by any reputable project developer — be it Unitech or DLF — cost Rs 1 crore and more.

“If you have a crore or more to spare, you now have a choice of either owning a big developer’s flat or a two-bedroom apartment in Jumeirah, the Arabian resort in Dubai fashioned like an ancient citadel. With a little more investment, you could even go for Singapore,” said Abhijit Das, regional director, Jones Lang LaSalle Meghraj.

“Places like Dubai have had an appreciation rate of up to 50 per cent in the last two years. So in the long run, it makes good investment sense, too,” he added.

While Dubai is a tax-free haven, it also provides incentives like easier citizenship and allowing people to take their domestic helps.

“The thing about Dubai is that it has a range of properties on offer — from studio apartments to penthouses — either in posh seafronts or working-class areas. The price ranges from Rs 70 lakh to a few crores,” said Das.

But, Das added, Singapore is the place to watch out for. Many Calcuttans send their children for higher education to Singapore and it counts as one of their most favourite shopping destinations.

Das predicts a rise in Calcutta’s proximity to the Far-East in terms of property buyouts, especially with the government’s Look East policy, several free trade agreements on the anvil and increasingly porous borders.

The Malaysian government has launched the “Malaysia My Second Home” project to lure the wealthy from across the world.

All one needs to do to be a part of the programme is deposit 300,000 Malaysia Ringgits (Rs 36 lakh) in a local bank, from which up to Rs 29 lakh can be withdrawn after a year to buy a house there.

According to a study by Knight Frank, Indians’ demand for property in London is particularly high in the mid-range price bracket of £400,000-700,000 (Rs 3.2-5.7 crore), which would fetch them homes in areas such as St John’s Wood and Kensington.

It estimates that the demand will soon go up by 7 per cent annually.

Reserve Bank of India guidelines cap an individual’s investment in property abroad at $200,000, or Rs 80 lakh, a year. For joint ownership, the limit rises proportionately. An Indian currency bank account is enough to strike a deal.

For Singapore, a buyer has to pay 5 per cent to the developer of the transaction value. The property papers will be processed in Singapore and the buyer will have to pay 25 per cent more in a month or two.

Singapore’s Far East Organisation will facilitate a bank loan for the rest of the amount at the current interest rate in the country, which could be as low as 3.5 per cent.

In case of ready property, the company will help the buyer lease it out immediately. It also promises to do the needful if the owner wants to sell the property in three to four years.