Bengaluru in top 10 Asian cities for realty
India’s tech hub Bengaluru, the capital of Karnataka, is ranked among the top 10 Asia-Pacific cities for cross-border investments in real estate, said a survey by a leading consulting firm. The survey found Bengaluru to be one of the fastest growing cities in India owing to the presence of global players in IT, biotech, pharmaceuticals, manufacturing and other growth sectors.
“Real estate investment in Bengaluru doubled to USD1,600 million (INR 11,200 crore) in fiscal 2018-19 from USD800 million (INR5,600 crore) in fiscal 2017-18, said CBRE South Asia Ltd consultant firm from its Asia Pacific investor survey 2019 finding.
“Over the past two decades, Bengaluru has transformed to India’s own Silicon Valley from being a Pensioners’ Paradise and has become the hub of research and innovation,” added the finding.
Interest in Indian realty sector picked up after the central government framed a law in 2014 to set up the Real Estate Investment Trust (REIT), which brought in market transparency. “India is among the top five preferred markets in APAC after the citybased property developer Embassy and global private equity firm Blackstone have set up the first REIT in March 2019 as a joint venture in the realty sector,” revealed the survey.
The drivers for the new trend are new
infrastructure and potential growth opportunities in the market.
“Improved investor sentiment in office assets is likely to make quality buildings as a fund-raising avenue for developers and propel corporations to lease/purchase space in these developments,” said the finding.
CBRE Chief Executive Anshuman Magazine said Bengaluru figured as the first Indian city in the list of preferred investment destination, thanks to its global reputation as the home for trans and multinationals.
“The tech city with a strong talent base and quality infrastructure is popular for offering investment grade options in office, retail and residential segments,” said Magazine. The survey noted greater interest in office properties, followed by industrial and logistics, multi-family, hotels and retail for investment in the APAC region.
“There is also scope for investment in India as rising consumption and growing demand in the logistics sector will attract investors to seek opportunities in the market,” added Magazine.