Six Indian cities named in top 10 Asia-Pacific property investment spots
Six Indian cities have been named among the top 10 emerging property investment destinations for the Asia-Pacific including Hyderabad, Bengaluru, Pune, Mumbai, Delhi and Chennai.
According to the report from property consultant Cushman & Wakefield, titled Betting on Asia Pacific's next core cities, most global investments are set to be made in commercial assets such as offices, with India's cities placed to outperform others in the region.
The report added that much of the new found interest in these 'secondary' and 'tertiary' markets are the results of sparse long-term investment opportunities in core markets, which have prompted property investors to look elsewhere to secure financial success.
Cushman added that its 'The Atlas Summary 2017' report on real estate investment volume in Asia-Pacific is likely to reach $611 billion in 2017 alone after $136 billion was recorded in the first quarter of the year, indicating good health in the investment market across the region.
Siddhart Goel, senior director, research services at Cushman & Wakefield, has suggested India could lead the way in this drive towards a successful year.
"Asia-Pacific remains a very viable investment target for global capital. After entering in 2005 to 2008 and having learnt many valuable lessons since, global investors are well equipped to take advantage of the potential that Indian real estate markets offer," he said. "The country is firmly on track to become an economic powerhouse, with strengthening GDP (gross domestic product), better business environment and investor-friendly policies by the central government."
In fact, figures from the report reveal that net absorption in the top eight cities in India worked out at almost 35 million square feet in the last three years, despite the country's share of the Information Technology and Business Process Management (IT-BPM) sector in commercial office leasing falling steadily from between 65 per cent and 70 per cent to between 52 per cent and 55 per cent.
Goel added that India is expected to continue contributing significantly to the total office demand within the Asia-Pacific region, which could result in investors increasing their capital outlays in response to increasing long-term confidence in the Indian economy.
Despite this positive outlook, Jaxay Shah, president of the Confederation of Real Estate Developers' Association of India, stated that businesses should also tread carefully when exploring investment opportunities in a new market, particularly when their economy has been so fragile in the past.
He said: "In today's globalised environment and intense competition for capital, no economy can take its place for granted. It is a sobering thought that India ranks 183rd of 189 countries in ease of doing business as far as real estate is concerned."