There is a positive sentiment around Indian real estate among Indian and international investors in recent times. This follows the election of a new government and on account of an upturn in consumer demand, according to `Emerging trends in Real Estate Asia Pacific 2015, a report published jointly by Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC).
"The positive sentiment can be gauged by the fact that global real estate funds focused on India are seeking to raise $ 6 billion in new capital, on top of $ 1.6 billion raised in the first seven months of 2014; most of this is aimed at residential projects,’’ the report said adding that there had been a significant rise in interest from large sovereign and foreign institutional players over the course of 2014.
Consequently, the report said the rankings of Mumbai, Delhi and Bangalore had improved significantly from that of last year in the list of investment destinations. This year Mumbai is at 11th position (23rd in 2013) while Delhi was at 14th (21st in 2013) and Bangalore was at 17th position (20th in 2013).
"There is certainly a positive vibe complemented by the expectation of an improved economy and a more transparent environment, keeping interest levels up among investors,’’ Gautam Mehra, partner, PwC India, said in a statement.
In this backdrop, the position of excess liquidity across various jurisdictions which is pointed towards real estate augurs well for Indian markets. "Additionally, the expected developments around creation of a series of `smart cities’ focused on large scale manufacturing and the roll out of REITs (real estate investment trusts), if implemented well, are expected to further add to the momentum. The outcome of large volumes in e-commerce is likely to translate in demand for large scale logistics and warehousing space,’’ Mr. Mehra added.
The report said the top five investment markets for 2015 in Asia were Tokyo, Jakarta, Osaka, Sydney and Melbourne.
