Bangalore has emerged the top destination for investmet in India – ahead of New Delhi and Mumbai -- according to a survey jointly published by Urban Land Institute and consultancy firm Price water house Coopers.Mumbai and New Delhi slid down to 15th and 12th position respectively on the list of foremost real state investment markets due to rising economic and inflationary pressures. Bangalore ranks at number at 10, a similar rating like last year.
“Bangalore’s organic, growth driven market and ability to buck mega trends has helped it retain its credentials as a stable play and maintain its position on the list,” the report, titled Emerging trends in Real Estate Asia Pacific 2012, said.Last year PwC had ranked Mumbai at the third and New Delhi at the fifth place. The report says that the vacancy rates in Mumbai are likely to remain stable through the close of 2011 and into 2012 and the absorption will again be positive next year, but rental values will remain questionable as economic and inflationary issues continue to linger.
“In New Delhi , inflation continued to spike costs, and it may not be economically
feasible to build there. Ongoing funding problems do provide investment opportunities for private equity investors,” the report said.The report is based on the opinions of more than 360 in internationally renowned real estate professionals, including investors, developers,property company representatives, lenders, brokers and consultants.
“In the medium term there is a secular steady state trend given India’s favorable demographies. Even post 2009,when the real estate markets were bottoming out in India,there were bursts of demand at every price correction. This clearly demonstrates latent demand,” PwC Leader Infrastructure and Real Estate Jai Mavani said in a statement issued here.He, however, said that short term pain may stay until the regulatory processes get streamlined, approvals resume,interest rates improve and more liquidity gets introduced.
“Long-term solution can only come through reforms both regulatory and financial.The real estate regulation bill is a step in the right direction although the content needs some tweaking to prevent over regulation,” Mavani said, adding re-introduction of Real Estate Investment Trust (REIT) regulation was necessary.The report maintains that India’s consumption driven economy makes it a safe destination for real estate investment.The report maintains that India’s consumption driven economy makes it a safe destination for real estate investment.
“Bangalore’s organic, growth driven market and ability to buck mega trends has helped it retain its credentials as a stable play and maintain its position on the list,” the report, titled Emerging trends in Real Estate Asia Pacific 2012, said.Last year PwC had ranked Mumbai at the third and New Delhi at the fifth place. The report says that the vacancy rates in Mumbai are likely to remain stable through the close of 2011 and into 2012 and the absorption will again be positive next year, but rental values will remain questionable as economic and inflationary issues continue to linger.
“In New Delhi , inflation continued to spike costs, and it may not be economically
feasible to build there. Ongoing funding problems do provide investment opportunities for private equity investors,” the report said.The report is based on the opinions of more than 360 in internationally renowned real estate professionals, including investors, developers,property company representatives, lenders, brokers and consultants.
“In the medium term there is a secular steady state trend given India’s favorable demographies. Even post 2009,when the real estate markets were bottoming out in India,there were bursts of demand at every price correction. This clearly demonstrates latent demand,” PwC Leader Infrastructure and Real Estate Jai Mavani said in a statement issued here.He, however, said that short term pain may stay until the regulatory processes get streamlined, approvals resume,interest rates improve and more liquidity gets introduced.
“Long-term solution can only come through reforms both regulatory and financial.The real estate regulation bill is a step in the right direction although the content needs some tweaking to prevent over regulation,” Mavani said, adding re-introduction of Real Estate Investment Trust (REIT) regulation was necessary.The report maintains that India’s consumption driven economy makes it a safe destination for real estate investment.The report maintains that India’s consumption driven economy makes it a safe destination for real estate investment.
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