Foreign investors have given up a thumbs-up to the Indian foreign investment policy for the real estate sector which has helped the country regain favour as a preferred investment destinations in the Asia Pacific region, says the Emerging Trends in Real Estate Asia Pacific 2016 report.
The report jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) says Bengaluru, Mumbai and New Delhi were ranked 12, 13 and 16 by survey respondents for investment prospects.
These cities were ranked 15, 13 and 11 positions for development prospects in the list of the 22 markets covered in the report.
While Mumbai and New Delhi have dropped in rankings from an investment prospects perspective (they were ranked 11 and 14, respectively in Emerging Trends in the Real Estate Asia Pacific 2015 report), Bengaluru has shown a remarkable improvement as it has moved up five positions over its last year’s ranking (17th).
The report attributes the surge in Bangalore’s rankings to its technology industry and the availability of a large pool of skilled labour necessary to ramp up the venture capital backed startups, the Hindustan Times reported.
It said Mumbai is on a recovery path on the commercial real estate side and, down-town is on stable ground. Delhi and nearby industrial zones have one of the biggest pipelines of new supply in Asia.
In the case of Bengaluru, in spite of a huge amount of upcoming supply of commercial office inventory, it is not perceived to be a cause of concern as it is expected to be matched by an equally high absorption rate.