Mumbai has the best residential real estate market among Indian cities, followed by Bengaluru and New Delhi, Urban Land Institute (ULI) and PwC said in a report.
The report is based on a survey conducted by the two organisations. Mumbai and Bengaluru shot to the top of the buy/hold/sell rankings after being rated ‘buy’ by 41 percent and 45 percent of the survey’s respondents, respectively.
The real estate market in India has become more transparent after the implementation of new real estate laws that have brought developers’ practices closer to international standards.
In the list of 22 Asian real estate markets that have investment potential, Mumbai was ranked 13th, while Bengaluru and New Delhi grabbed the 16th and the 17th spots, respectively.
In terms of development potential in 2019, Mumbai was ranked 9th, while Bengaluru and New Delhi came in at the 14th and 13th spots, respectively, ULI and PwC said in the report titled Emerging Trends in Real Estate Asia Pacific 2019.
“India continues to remain one of the most attractive investment destinations in the Asia Pacific region. With most of the other cities near the top of the cycle in terms of rent and capital values, India still offers value creation opportunities,” said Bhairav Dalal, Partner – Real Estate Tax, PwC India.
“Demand for buying and holding retail assets is certainly moving northwards. Logistics and coworking play continues to evolve rapidly, although some investors have expressed differential opinion over their sustainability,” Dalal said.
Development of business parks has resulted in new suburbs springing up around cities like Mumbai and Bengaluru. But it also pays to keep tabs on where new university graduates are heading, which brings second-tier cities such as Pune into the conversation, the two organisations noted in the report.
Large global investors have been putting capital into retail real estate projects in Bengaluru, Mumbai and other Indian cities. India witnessed huge retail supply over the past decade, much of it badly located and badly managed. Investors believe that with better asset management, this is an opportunity to add value.“India’s rapidly growing capital markets mean demand for high-quality offices is booming in Mumbai,” said John Fitzgerald, CEO of ULI Asia Pacific. “The report shows that despite apparently high vacancies, ongoing shortages of modern office stock mean new supply tends to be absorbed quickly.”