 "Bengaluru most preferred in India for real estate investment prospects: report")
Bengaluru, Mumbai and New Delhi have been ranked twelfth, thirteenth and sixteenth positions for real estate investment prospects in Asia Pacific region and at fifteenth, thirteenth and eleventh positions for development prospects. These results were part of the Emerging Trends in Real Estate Asia Pacific 2016 report jointly published by Urban Land Institute and PricewaterhouseCoopers (PwC).
While there has been a marginal drop in rankings of Mumbai and New Delhi from an investment prospects perspective (they were ranked 11th and 14th, respectively in Emerging Trends in Real Estate Asia Pacific 2015 report), Bangalore has shown a remarkable improvement as it has moved up 5 positions over its last year's ranking (17th). The report attributes the surge in Bangalore's rankings to its technology industry and the availability of a large pool of skilled labor necessary to ramp up the venture capital backed startups.
The report highlights that the Mumbai is on a recovery path on the commercial real estate side and, down-town is on stable ground. Delhi and nearby industrial zones have one the biggest pipelines of new supply in Asia and on the ground, occupancy problems are focused on B-grade or secondary assets rather than the higher-quality buildings, for which the demand remains high. The story in Bengaluru is however different than that in Mumbai and Delhi, where even the huge amount of upcoming supply of commercial office inventory is not perceived to be a cause of concern, as it is expected to be matched by an equally high absorption rate.
| 2015 | 2020E | |||||||||
| (Prices in '/sqft) | (Prices in '/sqft) | Price growth | ||||||||
| Rank | Location | City | Min. | Max. | Avg. | Min. | Max. | Avg. | 2015–2020 | CAGR |
| 1 | Madh–Marve | Mumbai | 12,000 | 15,000 | 13,500 | 23,300 | 29,000 | 26,200 | 94% | 14.20% |
| 2 | Ulwe | Mumbai | 5,500 | 6,500 | 6,000 | 9,300 | 11,000 | 10,200 | 70% | 11.20% |
| 3 | New Airport Road, Viman Nagar | Pune | 6,500 | 8,000 | 7,250 | 10,500 | 13,000 | 11,800 | 63% | 10.20% |
| 4 | Panathur–Varthur | Bengaluru | 3,300 | 5,400 | 4,350 | 5,300 | 8,700 | 7,000 | 61% | 10.00% |
| 5 | Majiwada–Kasarvadavali | Mumbai | 7,000 | 9,000 | 8,000 | 11,100 | 14,300 | 12,700 | 59% | 9.70% |
| 6 | Vishrantwadi | Pune | 5,600 | 6,800 | 6,200 | 8,800 | 10,600 | 9,700 | 56% | 9.40% |
| 7 | Thanisandra | Bengaluru | 3,800 | 5,800 | 4,800 | 5,900 | 9,000 | 7,450 | 55% | 9.20% |
| 8 | New Gurgaon (sectors 81–95) | NCR | 3,900 | 5,500 | 4,700 | 5,700 | 8,100 | 6,900 | 47% | 8.00% |
| 9 | Guindy–Alandur cluster | Chennai | 7,000 | 8,000 | 7,500 | 10,150 | 11,600 | 10,900 | 45% | 7.80% |
| 10 | Golf Course Extension | NCR | 6,800 | 9,800 | 8,300 | 9,700 | 13,900 | 11,800 | 42% | 7.30% |
| 11 | Puppalaguda–Narsingi | Hyderabad | 2,600 | 3,200 | 2,900 | 3,700 | 4,500 | 4,100 | 41% | 7.20% |
| Source: Knight frank | ||||||||||
Abhishek Goenka, Partner, PwC India, said: "While Mumbai and New Delhi have marginally dropped in rankings, from an investment prospect perspective, New Delhi ranks 2nd and Mumbai ranks 5th in the buy recommendation rankings for industrial / distribution properties among the 22 cities covered. Furthermore, Mumbai ranks 8th and 9th, respectively, for office and residential buy recommendations. These numbers, in a way, indicate that the investment prospect rankings of these cities could move up and push into the "Top-10" bracket in the years to come."
