In a recent report by Cushman & Wakefield, leading global real estate consultancy, Mumbai recorded real estate investments of US$ 1,749 million, placing it on 81st position in global survey ranking cities by their success at attracting capital. However, Mumbai was placed number one by 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 report “Winning in Growth Cities” that survey’s over 400 global locations, also places Bengaluru at 161 with total real estate investment volume of US$ 461 million. New York (US$ 51 Bn) remained the top city in the survey followed by Los Angeles (US$ 39 Mn) and San Francisco (US$ 32 Bn). In Asia Hong Kong (global rank 8) received the highest volume of investment at US$ 18.4 Bn.
The global property investment market saw volumes rise 4% year-on-year to US$1.5 Trillion (Tn) in a one year period ending June 2017. The rise compared to the previous 12 months reflects improving sentiment in 2017. The APAC region remains a very viable investment target for global capital. The region’s diverse development backdrop and deepening property markets will allow investors to turn their attention to secondary and tertiary markets and alternative property and set the stage for next core strategies
India received a total real estate investment of US$ 2.87 Bn in the six cities of Mumbai, Bengaluru, Pune, Delhi – NCR, Chennai and Hyderabad, which was an increase of 100%. These markets have been able to attract capital based on strong economic drivers, acceleration in reforms, high yields and rapidly modernising business base.
Of the total real estate investment received by the various cities of India, the largest share of over 55% came in from the USA, 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.
“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.” (Anshul Jain - Country Head & Managing Director, India, Cushman & Wakefield)
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