Sentiment around Indian real estate among both domestic and international investors has improved in recent times, following the election of a new government and also on account of an upturn in consumer demand, says the Emerging Trends in Real Estate® Asia Pacific 2015 report, published jointly by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC).

Consequently, the rankings of Mumbai, Delhi and Bangalore have improved significantly from that of last year in the list of investment destinations. This year, Mumbai occupies the 11th position (it was ranked 23rd in 2013), while Delhi and Bangalore have taken up the 14th and 17th positions respectively. In 2013, Delhi was placed at 21st position while Bangalore was at 20th position.

The positive sentiment can be gauged by the fact that global real estate funds focused on India are seeking to raise $6 billion in new capital, on top of $1.6 billion raised in the first seven months of 2014; most of this is aimed at residential projects. In addition, there has been a significant rise in interest from large sovereign and foreign institutional players over the course of 2014, the report highlighted.

Gautam Mehra, Partner, PwC India, said, Mumbai has climbed the most in ranking among the cities in the survey, from 23rd position to 11th, with the other Indian cities, New Delhi and Bangalore, also seeing a jump in the ranking, driven by the election of the new government.

There is certainly a positive vibe complemented by the expectation of an improved economy and a more transparent environment, keeping interest levels up among investors. In this backdrop, the position of excess liquidity across various jurisdictions which is pointed towards real estate augurs well for Indian markets.

Additionally, the expected developments around creation of a series of “smart cities” focused on large scale manufacturing, and the roll out of REITs, if implemented well, are expected to further add to the momentum. The outcome of large volumes in e-commerce is likely to translate in demand for large scale logistics and warehousing space, he added.

Overall in Asia, real estate markets are expected to remain resilient despite weakening economic fundamentals throughout 2015, as capital continues to flow into the industry from a variety of investment sources, both domestic and international. Japan remains a favored country for real estate activity.


Source :- DNA Property