Bangalore 4th top realty investment destination

By siliconindia   |   Monday, 15 December 2008, 18:12 IST   |    30 Comments
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Bangalore 4th top realty investment destination
Mumbai: Despite being hit by the financial crunch, the position of India's realty market compared to others in the Asia Pacific region is promising. An Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC) report on Emerging Trends in Real Estate Asia Pacific 2009, placed Indian cities Bangalore, Mumbai and Delhi at fourth, seventh and ninth place respectively in terms of investment in the sector in the region. Besides, Bangalore ranked one on development prospectus. "While the absence of complex structured credit instruments may have prevented a sub-prime type of crises, the credit squeeze continues to be a big area of concern and there a feeling that its full impact has yet to be felt, including on real estate valuations," Said Gautam Mehra, Executive Director and India leader (real estate) of PricewaterhouseCoopers. Yet, India currently appears to be a relatively more lucrative real estate destination than its counterparts in the Asia Pacific region. The cities have been ranked according their development and investment prospects and risk analysis."From a development perspective, three of the top four cities in the Asian region are from India, and they also figure in the Top-10 from an investment prospect, though with relatively higher risk," said Mehra. Bangalore catapulted from 12th to fourth place for investment and number one for development prospects. Mumbai spiralled into seventh place for investment and third for development prospects. But, the city is also ranked the third riskiest for investment. New Delhi rose to ninth place for investment and fourth for development. Tokyo, Singapore and Hong Kong rank one, two, and three respectively. Shanghai falls from first to fifth place, ranking after Bangalore. "It is true there is a slowdown even in these cities, particularly in commercial real estate. But in comparison with other Asian cities, the situation is more optimistic," added Mehra.