Bangalore is top destination for real estate investment

As per the recent report by JLL, The IT capital – Bangalore, has surpassed both the commercial and political capitals of India as the top investment destination in the property market.

Nearly 13 per cent of over $6.7 billion that PEs have invested in India's property market from 2013 through the first half of 2015 has gone to Bengaluru, this despite being a much smaller city as compared to Mumbai and Delhi.

The investment intensity index provides a measure of real estate market liquidity and is a barometer of a city's overall attractiveness to investors based on direct real estate property investment over a three-year period. The index advises investors to continue to seek core business park or office investments in Bengaluru.

Leased office assets such as IT parks and IT-SEZs attracted significant interest from foreign investors as they continue to ramp up their portfolio of office space. This is primarily due to low risk owing to high occupancy levels along with stable rental yields and significant potential for appreciation in capital values.

Cities like New York, London and Tokyo almost always rank at the top in commercial real estate investment volumes. The top five cities in the Asia-Pacific region are Tokyo, Singapore, Seoul, Sydney and Hong Kong, ranked by three-year rolling direct real estate investment volumes though the second quarter of 2015.

 

 

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