According to reports, In Asia, India is most preferred real estate destination for investments
India – Most preferable real estate destination
According to recent reports, After replacing the Mumbai, Bengaluru is emerge as the most preferred real estate investment destination among other Indian cities. It seems that Indian real estate market has won the back its old favor as it is one of the most preferred real estate destination for investments in Asia Pacific region, as per the reports of PwC India (PricewaterhouseCoopers India).
According to report of consultancy firm which was titled with “Emerging Trends in Real Estate Asia Pacific 2016” and released on Wednesday, “In last one year, the overseas funds accounted for more than 50 percent of all investment activity in India compared to 26 percent in 2013”. The same reports stated that “Flow of foreign capital in India is increasing dramatically from the end of 2014 as the amount invested was almost 200 percent year-on-year by the end of 2015”, however; the reports was based on the data of Real Capital Analytics which provides information on commercial property.
PricewaterhouseCoopers India, attributed that due to growing interest among NRIs and other foreign investors into the real estate market of India was just because of some of the liberalization measures which was adopted by the central and state governments of India. However; for instance, due to reducing the minimum size of built areas in FDI linked real estate projects to 20,000 sq. m (earlier it was 50,000 sq. m ) has increase the confidence among institutional investors because with this for them it was easy to find exist. According to Abhishek Goenka, Partner at PricewaterhouseCoopers India, “As per the perspective of deal structures, the mezzanine financing continues with a shift in favor of equity structures, especially in big ticket transactions for commercial assets such as; IT Parks and Business Parks. The reports pointed out that foreign private equity funds are among the biggest corporate real estate owners in our country, after starting from scratch in the year 2011 – 2012.
In previous years, Mumbai and New Delhi were among the most preferred real estate investment destination, but this year Bengaluru replaced them after emerging as most preferred real estate investment destination in India. The report mentioned that Bengaluru’s ranking is high as it is one of the major Technology Industry Hub with the availability of a large pool of skilled labor which is necessary to ramp up and backup the start-ups. However; reports, didn’t perceived a huge amount of upcoming supply of commercial office inventory which are in Bengaluru because according to experts it will match in next year as developers are expecting high absorption rate.
