Why Bengaluru, Mumbai Are Becoming Investors' Favourite
Investment prospects survey from Urban Land Institute (ULI) and PwC showed that Indian cities offered best real estate prospects in 2017. Last year, Japan and Australia were the favourites. The survey showed that there was a decline in the popularity of gateway cities barring Shanghai, which saw a recovery in foreign investment over the last couple of years.
Land availability and lucrative rate of returns are the prime factors that make Indian cities popular amongst investors. As per the survey, Bengaluru topped the charts of five markets for development and investment in 2017. In 2016, Global PE firms made an investment of $6.6 billion in the realty sector of Bengaluru. As per one of the leading real estate consultancies, Bengaluru took the lead by being the top city in CMI Global Top 30. The main reason for this is that the city houses IT industries and is a centre for the business process outsourcing (BPO). Even more innovation centres are coming up in Bengaluru because of the easy access to talent.
The second city in the list was Mumbai. It recently made its place in the top 30 dynamic cities in the world. Due to space constraints, Mumbai is facing slow growth. In the Union Budget 2017-18, seven new lines covering 3,123 kilometres have been sanctioned by the Maharashtra Government. The upcoming major road and rail infrastructure program are expected to be completed before 2019.
Other Indian cities that have great potential
The Indian real estate sector has experienced high growth in the recent times. As per the Department of Industrial Policy and Promotion (DIPP), the country received a foreign direct investment of $24.19 billion during the period ranging from 2000 to 2016. But with time, Mumbai and Bengaluru will reach its saturation point. In such a scenario, other upcoming cities such as Hyderabad, Pune and Chennai might be the stars of the future.
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