Indian IT firms eye Malaysian real estate

The Malaysian government and its tourism authorities are trying to attract Indian corporate houses and super rich tourists to invest in its residential properties.

Indian IT companies are showing a great interest in investing in these residential properties and over 700 Indians have acquired residential properties in Malaysia over the last three years.

P Manoharan, director, Malaysia Tourism India, told Business Standard: "Indian IT companies having their operations in Malaysia are showing great amount of interest in investing in residential properties in Malaysia.

Malaysian government launched "Malaysia my second home" programme around three years back. Under this programme we are trying to attract Indians to invest in Malaysian real estate. Our target is the super-rich tourists who would like to have their own property in Malaysia."

"However, Indian corporate houses, especially some big IT companies have shown great interest in investing in Malaysia's residential properties. After the programme was launched over 700 Indians, including some corporate houses, have acquired properties, mainly in Kuala Lumpur," Manoharan said.

Explaining the programme, he added that at present the Malaysia is allowing Indian tourists and corporate houses to invest in the residential properties. "However, the government is considering allowing Indian investors to buy commercial properties also. At present Malaysia is allowing Indians to buy only residential properties. The lower limit of investment is Rs 15 lakh and there is no upper limit."

On the differences between the real estate prices in India and Malaysia, he said, "Our real estate prices are very low when compared to India. If a property is worth Rs 300 to Rs 400 per square foot in India, then the same property is Rs 50 to Rs 60 per sq ft in Malaysia. So the difference is quite wide. Your budget for an apartment in India will get you a prime property located on a beach in Malaysia," Manoharan said.

Manoharan added that the Malaysian government is witnessing around 20-25 per cent increase in Indians buying properties there. "As an incentive for the Indian investors we also allow these buyers 10 years' multiple entry visa," he said.

Malaysia is celebrating 50 years of its independence this year. "Visit Malaysia Year 2007" campaign was launched to mark the golden jubilee year celebrations. Malaysia has charted out 240 events in Malaysia with 50 key events.

On the increasing number of Indian tourists, he said, "Malaysia has always been a favourite tourism destination for Indians. Last year (2006) we registered 280,000 Indian tourists in Malaysia. This year, till July, this number has already touched 270,000. So one can imagine the increase in the Indian tourist inflows to Malaysia."

Malaysia is also introducing a lot of unexposed destinations like Sabah and Sarawak, Kotakina Balu within Malaysia.