NEW DELHI: With favourable changes in the legislative environment, India’s six major cities — Mumbai, Bengaluru, Pune, New Delhi, Chennai and Hyderabad — have recorded 100% increase in investments in real estate sector at $2.87 billion during July 2016-June 2017, according to a survey by Cushman and Wakefield.
Mumbai, with an investment of $1.75 billion from foreign as well as domestic private equity investors, has moved up to 81st position in the global survey on rankings of cities for attracting capital from 149th slot in 2016.
Also, the financial capital has witnessed highest growth among the gateway cities of the world with 194% increase in investment from $594 million in the same period last year.
New York, with $51 billion investment, continues to rule the rankings of cities on the basis of investments in real estate sector followed by Los Angeles ($39.1 billion), San Francisco ($32 billion) and London ($30 billion).
Shanghai, which attracted $17.6 billion investment, is placed at 10th position. The global property market witnessed 4% rise in volume to $1.5 trillion during July 2016-June 2017. Cross border real estate investments constitute 75% of total volumes.
Of the total real estate investment received by various cities in India, the largest share of over 55% came in from the North America, while domestic and regional sources saw a decline in share of capital invested in India, said the report. Funds from Europe, which were conspicuous by their absence during last year, were seen contributing approximately 14% of the total investment.
India’s current economic position and stability in political scenario have been instrumental in creating an investment-friendly environment in the country, said the report.
Among Indian cities, after Mumbai, Bengaluru attracted $300 million, followed by Chennai ($276 million) and New Delhi ($125 million). Anshul Jain, country head and MD of Cushman and Wakefield India, said that current economic drivers are biased towards developed markets but Indian cities are performing ahead of expectations and are offering medium to long term growth potential in real estate.
Courtesy: By Times of INDA – source link