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Mumbai, Delhi top property investment destinations

New Delhi: India particularly, Mumbai and New Delhi are the foremost real estate market destinations,a recent study has shown.

The ULI-PwC report titled ‘Emerging trends in Real Estate ® Asia Pacific 2011’, which surveys comments from 150 industry leaders across the Asia Pacific region, ranks.

The survey brings to light the fact that residential real estate properties in Mumbai continue to maintain the growth momentum, as foreign investors still consider this market to be extremely viable. The survey ranks Mumbai at the third position, two notches higher than its previous position. The development potential for real estate remains vibrant and promising in Mumbai due to buying opportunities in retail, apartment and industrial sectors.

Commenting on Mumbai’s favourable ranking, Jai Mavani, Executive Director - Real Estate and Infrastructure- Tax & Regulatory Practice, PwC India said:

“India continues to enjoy a significant demographic dividend by virtue of millions of additions to the working population every year. Most of these will translate into first time home buyers. Needless to say, this will continue to stimulate construction activity, particularly for residential units in cities like Mumbai.”

Foreign investors are also upbeat about Delhi for commercial real estate investment as the city is expanding to Gurgaon and Noida. In addition, the Government’s plans to boost infrastructure with new roads, railways and airports makes Delhi a hotter real estate market destination. Incidentally the Government has already approved development plans for tens of thousands of acres of land for urban development.

The report forecasts that India will continue to maintain a GDP growth momentum of 9-10 percent by 2015 as the country will witness new private equity in capital markets which will inject capital in infrastructure projects.

On the Asia Pac scenario, ULI Asia Pacific Chairman C.Y. Leung, chairman of Asia Pacific, DTZ said:
“Many, if not most, Asian economies have rebounded to pre-crisis levels, and real estate markets, although mostly slower, are headed towards some semblance of normalcy. The distress that was so widely predicted a year ago for most of the region’s largest markets has by and large failed to materialise.”

Leung also noted that steady activity by buyers indicates that Asia’s real estate markets “are strong enough to grow into the high expectations current pricing trends imply,” particularly because of the shortage of both housing and commercial properties that persists in many areas.


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