Bengaluru in top 10 Asian cities for real estate investments

Bengaluru in top 10 Asian cities for real estate investments

18, Sept 2019

India's tech hub Bengaluru has emerged among the top 10 cities in the Asia-pacific region for making cross-border real estate investments. The city is the tech-hub of India and one of the leading consulting firms have recently confirmed that in Bangalore, real estate investment has doubled in the last fiscal. In 2017-18, the investment in the real estate sector in Bengaluru was INR 5,600 crore, which has increased to INR 11,200 in the 2018-19 fiscal. This is a positive news for the real estate sector in India. According to the survey, office properties held the greatest interest. This was followed by industrial and logistics related properties, multi-family properties, hotels, and retail spaces. Given its reputation as a home for multi-nationals, Bengaluru has become the first Indian city to be ranked on the list of preferred investment destinations.

One of the reasons for an increased interest in the Indian realty sector was the establishment of a law in 2014 to set up a Real Estate Investment Trust (REIT). This brought transparency into the market. The first REIT was set up in March 2019 as a joint venture between a global private equity firm Blackstone and Bengaluru city-based property developer Embassy. With this India became one of the top 5 preferred markets in the APAC. The potential growth opportunities in the real estate market and new trends are presently driving the real estate industry. The sentiments have improved among the buyers and investors are likely to be playing a more important role in the real estate industry in the coming years. From fund-raising to leasing and purchasing, the overall process is likely to be streamlined.

Another reason for the increased interest in the real estate sector are the emerging opportunities for potential growth and new infrastructure. As people look at investing in office assets, quality buildings may become a fund-raising avenue for realty developers. This propels corporations to purchase and lease space for development. The demand and consumption in the Indian logistics sector is another reason investors are being drawn to the realty market.

CBRE Chief Executive Anshuman, a property expert has stated that Bengaluru is the first city of India, that has made its way to the list of the preferred destinations for investments. The global reputation to be a hub for multi and transnationals has led to this status of the city. Besides, the tech city has got a strong base for talent. The infrastructure in Bengaluru is well-developed. It offers investment-grade offices, residential property and retail spaces. Today, Bengaluru is considered to be India’s Silicon Valley; a far cry from the pensioner’s paradise, it once was known as.

According to the survey, the interest seems to be higher in office properties. Next comes logistics and industrial property, followed by multi-family hotels as well as retail spaces. These properties are inviting investments in the APAC areas. In India, the scope for investing in the real estate segment is high. The demand for logistics is increasing, and consumption too, is on the rise. This is attracting the investors, who are looking for new investment avenues in the real estate market in India. The survey has revealed that Bengaluru has been one of the fastest developing Indian cities, thanks to the presence of international players in the IT, biotech, pharmaceuticals, biotech, manufacturing and IT segments. For investors and property owners, this is a good time to invest in real estate in Bengaluru. They can enjoy a good rental return in the coming months. This is a good time to make the investments.