Bengaluru is emerging as the real estate capital of India as it overtook Mumbai and New Delhi in this year’s rankings to become the most preferred real estate investment destination in India.
Bengaluru is emerging as the real estate capital of India as it overtook Mumbai and New Delhi in this year’s rankings to become the most preferred real estate investment destination in India.
According to a joint study conducted by PwC and Urban Land Institute (ULI), Bengaluru showed a remarkable improvement by moving up five positions over its last year’s ranking.
Bengaluru is now ranked 12th among the 22 major Asian cities with highest investment prospects for 2016.
The report attributes the surge in Bengaluru’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.
New Delhi and Mumbai have seen a marginal drop in their ranking from last year from an investment prospects perspective.
“While Mumbai and New Delhi have marginally dropped in rankings, from an investment prospect perspective, New Delhi ranks 2nd and Mumbai ranks 5th in the buy recommendation rankings for industrial / distribution properties among the 22 cities covered. Furthermore, Mumbai ranks 8th and 9th, respectively, for office and residential buy recommendations. These numbers, in a way, indicate that the investment prospect rankings of these cities could move up and push into the “Top-10” bracket in the years to come,” said Abhishek Goenka, partner, PwC India.
The report noted that Mumbai is on a recovery path as far as the commercial real estate side is considered. On the residential end, there is currently a reasonable amount of over supply in the suburbs. However, with the recent slowdown of approvals for new projects, the over supply situation could get addressed to a certain extent, it said.
In New Delhi and nearby industrial zones, on-the-ground, occupancy problems are focused on B-grade assets rather than the higher-quality buildings.
