Delhi, Gurgaon n Noida- Fav inv destination in Asia-Pacific Region

Realty pecking order holds out hope

Mumbai, Dec. 23:India is emerging as a top destination for real estate in the Asia-Pacific region with Mumbai and New Delhi ranked third and fifth, respectively, in a list of the region’s most promising investment markets for 2011.

A report by Urban Land Institute and PricewaterhouseCoopers (PwC) titled “Emerging trends in real estate; Asia Pacific 2011” also heaps praise on Mumbai and Delhi as the most favoured destinations for development prospects.

Singapore and Shanghai top Mumbai in this study, while Hong Kong is the fourth most promising investment market, followed by New Delhi.

“Mumbai is clearly the best performing and most active real estate market. Barring some concerns about oversupply, development potential for most real estate sectors remains promising in this city. In terms of investment, buying opportunities ring out in the retail, apartment and industrial sectors,” the report said.

As for Delhi, the report says the government’s plans to boost infrastructure with new roads, railways, airports and its approval of development plans for tens of thousands of acres are the driving forces for the city’s real estate markets. Housing and hotels are the most favoured investment categories, the report said.

Interestingly, Mumbai has moved up two notches in this year’s rankings from its previous position.

Commenting on Mumbai’s ranking, Jai Mavani, PwC India’s executive director (real estate and infrastructure), said, “India continues to enjoy a significant demographic dividend by virtue of millions of additions to the working population every year. Most of these will translate into first-time homebuyers. Needless to say, this will continue to simulate construction activity, particularly for residential units in cities such as Mumbai.”

The report also singles out Gurgaon and Noida as favourable investment destinations. “Foreign investors are also upbeat about Delhi for commercial real estate investment as the city is expanding to Gurgaon and Noida.”