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.
Keywords: Indan real estate sector
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