News: India’s top 6 cities record 100% jump in realty investments at $2.87 billion in 1 year till June-07.11.2017
India’s top 6 cities record 100% jump in realty investments at $2.87 billion in 1 year till June
MUMBAI | BANGALORE: Strong economic drivers, acceleration in reforms, high yields and rapidly modernizing business base has helped India’s top six cities record 100% jump in real estate investments over one-year period ending in June.
Top six property markets including Mumbai, Bengaluru, Pune, Delhi – NCR, Chennai and Hyderabad have attracted investments worth $2.87 billion during this period. Of this, 75% of money has come from overseas institutional investors, showed a Cushman & Wakefield report.
Mumbai recorded real estate investments of $ 1.75 billion, placing it on 81st position in global survey ranking over 400 cities by their success at attracting capital. However, Mumbai was placed number one in terms of growth amongst the gateways cities with a 194% increase from the previous year. Only Pune outshines Mumbai in terms of investment growth at 285%.
The survey places Bengaluru at 161st rank with total realty investment volume of $ 461 million. New York with $ 51 billion remained the top city in the survey followed by Los Angeles $ 39 billion and San Francisco $ 32 billion. In Asia, Hong Kong, with global rank of 8 received the highest volume of investment at $ 18.4 billion.
“Current economic drivers are biased towards developed markets, but Indian cities are performing ahead of expectations and are clearly offering superior medium to long term growth potential in real estate. While established markets of Mumbai, Bengaluru and Delhi NCR have seen the larger share of capital investments, cities such as Chennai, Hyderabad and Pune are also key destinations due to their inherent strengths as crucibles for multi-sector manufacturing activities for automobiles, engineering goods, white goods, pharmaceutical products, etc,” said Anshul Jain, Country Head & Managing Director, India Cushman & Wakefield.
Of the total real estate investment received by the various cities of India, the largest share of over 55% came in from the North America, while domestic and regional sources saw a decline in share of capital invested in India. Funds from Europe, which had not made its presence in the previous year, were seen contributing approximately 14%. India’s current economic position and stability in political scenario have been instrumental in creating an investment friendly country. Further with the positive changes in the legislative environment the invested capital is safeguarded.
The global property investment market saw volumes rise 4% year-on-year to $1.5 trillion during the year period ending June 2017. The rise compared to the previous 12 months reflects improving sentiment in 2017. The Asia-Pacific region remained a viable investment target for global capital. The region’s diverse development backdrop and deepening property markets will allow investors to turn their attention to secondary and tertiary markets and alternative property and set the stage for next core strategies, the report added.
