Bengaluru, Now the Top Property Investment Destination
BENGALURU: The Silicon Valley of India is not just the hotspot for the leading startups in the nation but has also earned a new distinction lately. Bengaluru has left the commercial and the political capital to become the top investment destination in the real estate space.
Since the year 2013, PEs have invested over $6.7 Bn out of which a whopping 13 pct has come to Bengaluru’s share.
Asia-Pacific City Investment Intensity Index from Jones Lang LaSalle (JLL), a global property consultancy, has listed Bengaluru amongst the top 20 destinations to invest across the world. The new ranking of the southern city has placed it above the political and the commercial capitals, Delhi and Mumbai, on the list. This year, Bengaluru was also listed amongst the 20 leading technology-rich cities globally by JLL.
“Despite being a smaller city than the political and financial capitals of India, it has managed to attract a lot of investment in comparison of its size,” a JLL report said.
This index from JLL determines the real estate market liquidity and discovers the extent of attraction investors have towards the city depending upon the direct real estate investment in the last three years. “Real estate investment is generally difficult for foreigners in India, and investors looking to take part in market growth may need to go through routes such as debt deals and joint ventures with local partners,” said Anuj Puri, chairman and country head at JLL India.”The index advises investors to continue to seek core business park or office investments in Bengaluru.”
The office space absorption in the city is quite high owing to the ramping up of office space by foreign investors in surging. “Bengaluru’s office market has seen the highest commercial space absorption in the country and continues to retain the spot. This, along with the consequent job creation, would throw up opportunities in residential space,” said Rubi Arya, executive vice chairman at Milestone Capital Advisors. “We are keenly watching the market given the momentum.”
Milestone Capital Advisors has endowed 120 Cr on a fully leased property at Electronic City, Bengaluru which has attracted affluent individuals for picking up stake.
Bengaluru has prospered in both commercial and residential markets and has been more attractive and mature than the other cities, according to Ambar Maheshwari, chief executive of private equity funds, Asset Management Company.
“As a thumb rule, every 100 sq ft of commercial space absorbed leads to demand for 600 sq ft residential area. In terms of commercial space, Bengaluru is the biggest market and that explains investors’ interest,” Maheshwari said.
New York, Tokyo and London have always been on the top positions in this index. Tokyo, Singapore, Seoul, Sydney and Hong Kong are amongst the leading destinations from Asia-Pacific region based on the direct real estate investment volumes in the 3 year period.
Source : Silicon India
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