Mumbai, Delhi & Bangalore Real Estate to See Rise in Foreign Investment: Study

BENGALURU: Real estate investment is going witness more of foreign investors in 2016. Such is the result of a survey conducted in property markets of Mumbai, New Delhi and Bangalore.

The perception study is conducted by PricewaterhouseCoopers and Urban Land Institute over 22markets across the country during September and October, this year.

At the end of the survey PwC observes a vibrant and exhilarating scene all through the real estate sector, reports Economic Times.

In the scope of investment, Bangalore, Mumbai and New Delhi are ranked at 12th, 13th and 16th position respectively.

In terms of development 15th, 13th and 11th position is held by Bangalore, Mumbai and New Delhi.

If compared to the 2015 survey report then, Bengaluru has shot up five positions and is at 17th. Mumbai and Delhi however showcased a marginal drop in the overall growth aspect.

The study is conducted with verdicts, ideas and opinions of of more than 400 global real estate professionals like investors, developers, property company representatives, lenders, brokers and consultants.

Abhishek Goenka, Partner, PwC India said, "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."

Goenka added, "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."

Delhi survives with a high demand for quality constructions, with some occupancy problems on B-grade and secondary assets.

The Delhi-Mumbai Industrial Corridor, is another remarkable project by the Indian government that is expected to be supported by Japanese capital to grow eight international-standard industrial clusters between the two cities.

Mumbai is in a recovering state on the commercial real estate side. However its down-town is on stable ground. Commercial real estate is at a boost especially in the suburbs. Slowdown in the process of approval of new projects is leading to oversupply in some extent.

The case is pretty different in Bangalore as the report says. Here the absorption rate is high in case of f commercial office inventory.

Since all the three mega cities are reflecting a positive vibe in development of architecture, thus, foreign inflows by institutional players is certain to happen. Investors who initially ran a loss or faced a tough time during 2006-07 are now eager to be a part of the real estate industry.

Overall in Asia, real estate markets are expected to remain resilient despite weakening economic fundamentals throughout 2016, 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, with Tokyo and Osaka ranked first and fourth, respectively, in terms of investment for next year," Goenka added.

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