Six Indian cities have made their way into the list of top 10 emerging real estate investment zones in the Asia-Pacific. These cities are Hyderabad, Bangalore, Mumbai, Pune, Chennai and Delhi. According to reports, most global property investments in 2017 will cover commercial properties or office assets. The markets in these cities are well positioned to surpass other emerging cities in the Asia-Pacific. Additionally, investors are considering tertiary and secondary markets in tandem with other property types because of the low investment scope in erstwhile Asia-Pacific markets that were considered safe havens in the past.
According to the Senior Director, Research Services, Cushman & Wakefield, Siddhart Goel, investment viability is still very high in the Asia-Pacific region in terms of global capital deployment. Global investors have learnt several lessons after foraying into this market in 2005-2008 and are now well equipped to tap into the potential of the real estate market in India according to him. Goel believes that India is steadily becoming a major financial and economic powerhouse globally with an improved gross domestic product (GDP), a more conducive environment to do business and policies that favor investors.
Goel also added that these factors have led to 32-35 million sq. ft. being the net absorption across the top 8 cities in the country over the last three years even though the BPM-IT segment has witnessed an erosion of share when it comes to leasing of commercial offices. This has come down to 52-55% from the earlier high of 65-70%. Within the Asia-Pacific region, India is expected to keep contributing majorly to overall office demand. Global investors are also scaling up overall capital outlays due to their increased confidence in the long-term possibilities for the Indian economy in an environment where there is greater accountability and transparency suitably fueled by reforms in policymaking including GST, RERA, REITs and the Benami Transactions Act according to him.
Cushman & Wakefield has stated in it’s The Atlas Summary 2017 report, that investment volumes for real estate in the Asia-Pacific region should touch a whopping $611 billion in the current year. Total investment values nearing $136 billion are also forecasted for the region in the first quarter of this year, which is a record and indicates the good health of real estate investments made in the Asia-Pacific region. Without any unforeseen developments in the coming months, there is expected to be a hugely positive momentum in the Asia-Pacific with regard to real estate investments.