Bangalore and New Delhi have improved their rankings as investment and property development destinations in 2009, while Mumbai has been able to hold on to its earlier position, according to a report prepared by tax and advisory firm PricewaterhouseCoopers (PwC) and Urban Land Institute (ULI).
Bangalore, the country’s IT capital, is ranked No.1 on development prospects and 4th on investment prospects among Asia-Pacific (Apac) cities in 2009 from 13th poistion in 2008, according to the Emerging Trends in Real Estate Asia Pacific 2009 Report, which collated responses from participants across Asia-Pacific.
“This demand shift seems to be driven by new emerging markets within the city, including the biotech and textile industries, along with the IT arena,’’ the report said.
Mumbai, the country’s commercial capital, has maintained its seventh position as the investment destination since 2007 and the third position as the development destination in 2009.
‘’Key factors contributing to this movement are rising incomes, urban development, and a new-found availability of financing. Unfortunately, these attributes have caused some problems for the real estate markets, as development has happened at a faster pace than the growth of the overall economy,’’ the report said.
However, the Mumbai market is perceived to be riskier when compared to other cities and has been ranked the 3rd riskiest for investment.
New Delhi, the country’s political capital, moved up to the 9th position on investment prospects from the 13th last year and currently ranks the 4th on development prospects.