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India has been ranked among the top 20 global investment market for real estate with investments of $3.4 billion in 2012, according to a report.
China, USA and UK are the top three destinations for investing in real estate globally, the International Investment Atlas report by Cushman & Wakefield said. The global property investment market recorded a 6% growth rise in 2012 with total volumes reaching $929 billion.
In 2012, China and the USA were two key engines of the strong finish – the former benefitting from a record high in land right sales and the latter seeing a rush of activity to beat year-end capital gains tax hikes.
Majority of the investment in India were through institutional sales – 67% while remaining were through private equity (PE) investments – 33%. Bengaluru, Mumbai and NCR were the top three cities for PE investments.
Sanjay Dutt, Executive Managing Director, South Asia, Cushman & Wakefield said, “Bengaluru witnessed some high value investments in pre-leased office asset which has led it to be the top runner in the PE market. However, NCR and Mumbai continue to be preferred locations for investments due to the opportunity they offer. NCR market in 2012 saw lower number of investments, as it is an active residential sales market, which obviated the need for PE funding in many projects.”
He also said the investment in ready income generating/operational office assets have gained strength over the last few years due to lower risk and steady cash flows associated with this type of investment.
And with increase in number of high value transactions in this sector, the market is moving towards a mature phase, Dutt added.
