New Delhi: Real estate investment in India’s six major cities doubled to $2.87 billion in the year ended June 2017 as Mumbai attracted maximum capital and was ranked 81st globally, according to Cushman & Wakefield report.
“India received a total real estate investment of $2.87 billion in the six cities – Mumbai, Bengaluru, Pune, Delhi-NCR, Chennai and Hyderabad – which was an increase of 100 per cent,” the property consultant said.
These six cities were able to attract capital because of strong economic drivers, acceleration in reforms, high yields and rapidly modernising business base.
“Mumbai recorded real estate investments of $1,749 million, placing it on 81st position in global survey ranking cities by their success at attracting capital,” C&W said. Mumbai was ranked 149th out of about 400 metros globally in the last year ranking.
Out of the total real estate investment received by six cities, the report said the largest share of over 55 per cent came in from the north America.
Funds from Europe contributed about 14 per cent, while domestic and regional sources saw a decline in share of capital invested in India.
“Current economic drivers are biased towards developed markets, but Indian cities are performing ahead of expectations and are clearly offering superior medium to long term growth potential in real estate,” said Anshul Jain, Country Head & Managing Director, India Cushman & Wakefield.
Jain said that although established markets of Mumbai, Bengaluru and Delhi NCR have seen the larger share of capital investments, cities such as Chennai, Hyderabad and Pune are also key destinations being manufacturing hub for automobiles, engineering goods, white goods, pharmaceutical products, etc.
The country’s current economic position and political stability have been instrumental in creating better investment environment, the consultant said, adding that the positive changes in the legislative environment has ensured that the invested capital is safeguarded.
According to the report, Mumbai was placed number one by growth amongst the gateways cities with a 194 per cent rise from the previous year. Only Pune outshines Mumbai in terms of investment growth at 285 per cent. The report ‘Winning in Growth Cities’ that surveys over 400 global locations, also places Bengaluru at 161 position with total real estate investment volume of $461 million.
“The global property investment market saw volumes rise 4 per cent year-on-year to $1.5 trillion in a one year period ending June 2017. The rise compared to the previous 12 months reflects improving sentiment in 2017,” C&W said.
New York ($51 billion) remained the top city in the survey followed by Los Angeles ($39 billion) and San Francisco ($32 billion).