Indians Among the Richest Foreign Homebuyers in America

Indian buyers are punching well above their weight in the American housing market. According to the National Association of Realtors' 2013 Profile of International Home Buying Activity (covering the year ending March 2013), Indians accounted for 5% of all international purchases in the US — placing India among the top five sources of foreign buyers, alongside Canada (23%), China (12%), Mexico (8%), and the United Kingdom (5%).

How much do Indian buyers spend?

The median purchase price for Indian buyers was $300,000 — significantly above the median for all foreign buyers ($226,000) and second only to Chinese buyers, whose median reached $425,000. To be precise: Indians were not the single richest foreign buyers, as some headlines suggested — they were second. (The United Kingdom followed at $250,000, then Canada at $183,000 and Mexico at $156,250.)

What are they buying?

Nearly two-thirds of international buyers purchased single-family homes, and about 42% intended them as primary residences — a profile that fits India's growing cohort of young professionals settling in American suburbs to raise families. About 63% of international transactions were all cash. And the buyers weren't just investing blindly: 53% said the most important factor was their view that US real estate was a "profitable" or "secure" investment.

Where are they looking?

Search data from the period showed Los Angeles as the most-searched US city by foreign buyers, followed by Miami — the classic holiday-home market. Demand stayed strong even against low inventory, with prices rising and homes spending fewer days on the market.

Read the 2013 NAR international buyers report summary