Bangalore, Mumbai and Delhi slip to the bottom of the investment destinations list, according to the “Emerging Trends in Real Estate Asia Pacific 2013 Report” jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). The report indicates that, Bangalore, Mumbai and Delhi have slipped sharply to the 19th, 20th and 21st positions from 10th, 15th and 12th positions last year.
This report is based on the opinions of more than 400 respondents which include real estate developers, investors, property company representative, lenders, brokers and consultants.
While Bangalore is perceived to be a mature market, the city's over reliance on the sluggish global IT industry translates into low growth potential in the medium term. Mumbai is plagued with over supply across asset classes, resulting in high level of vacancy and stagnant yields.
Cities in India have slipped on the preferred investment list, on the back of socio-political and economic issues, says Gautam Mehra, executive director at PwC India. “Rising inflation, uncertainty on fiscal policies and subdued interest from opportunistic investors are some added concerns."
While cities in India have bottomed out the preferred investment list, Asia Pacific cities like Jakarta, Shanghai and Singapore are amongst the top three investment markets for 2013. The respondents are expanding their horizons as they see investment opportunities in these destinations.