ındian real estate market

According to the Emerging Trends in Real Estate® Asia Pacific 2016 report, jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC), India gained the confidence of foreign investors again due to the progressive evolution of Indian foreign investment policy for the real estate sector and became the fovorite real estate investment destination in Asia Pacific region.

Survey respondents ranked Bangalore, Mumbai and New Delhi at 12th, 13th and 16th positions for investment prospects and at 15th, 13th and 11th positions for development prospects respectively, in the list of the 22 markets covered in the report. While there has been a marginal drop in rankings of Mumbai and New Delhi from an investment prospects perspective (they were ranked 11th and 14th, respectively in Emerging Trends in Real Estate® Asia Pacific 2015 report), Bangalore has shown a remarkable improvement as it has moved up 5 positions over its last year’s ranking (17th). The report attributes the surge in Bangalore’s rankings to its technology industry and the availability of a large pool of skilled labor necessary to ramp up the venture capital backed startups.

Overall, the outlook seems to be positive; this is evidenced by the fact that the 80 percent of the foreign capital inflows have been all-equity buyouts by big institutional players. Even those investors who had burnt their fingers in the first round of investments in 2006-07, are not wary of Indian markets anymore, and are willing to bet their money once again on the Indian real estate story.

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