The Asia Pacific investor intentions survey 2019 finding by CBRE South Asia Ltd. consultant firm has ranked Bengaluru among the top 10 Asia-Pacific cities for cross-border investments in the field of real estate.
After the launch of the first Real Estate Investment Trust (REIT), India was listed among the top 5 preferred markets in APAC. The tech hub of India became the first Indian city to be included in the list of preferred investment destination based on its growing reputation around the world.
Real Estate Investment Doubled in 2018-19 In Bengaluru
The survey by the leading consulting firm says, “Real estate investment in Bengaluru doubled to $1,600 million ( Rs. 11,200 crores) in fiscal 2018-19 from $800 million ( Rs. 5,600 crores) in fiscal 2017-18.” Foreign investors really started showing interest in the realty sector of the country after the central government set up a law in 2014 to establish REIT. It made the transactions transparent.
The survey says, “India is among the top five preferred markets in APAC after the city-based 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.”
Potential growth opportunities and new infrastructure are the key factors for driving this new trend in the real estate market. The finding also said, “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.”
Bengaluru Is First Preferred Investment Destination
The Chief Executive of CBRE Anshuman Magazine said that Bengaluru has been figured as the first city in India to be in the list of a preferred investment destination. According to Anshuman, it is because of the global reputation as the home for trans and multi-nationals.
Anshuman further added, “The tech city with a strong talent base and quality infrastructure is popular for offering investment grade options in office, retail and residential segments.” According to the survey, the investors showed “ Greater interest in office properties followed by logistics and industrial, hotels, multi-family, and retail for investment in the APAC region.”
Anshuman Magazine added, “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.” The survey also says that Bengaluru is one of the fastest growing cities in the country due to the presence of biotech, IT, pharmaceuticals, manufacturing, and other growth-oriented sectors.
