Tuesday, November 24, 2015

Bangalore in top 20 list of real estate investment zones

Bengaluru has made its way to the top twenty list of cities with the most of commercial real estate investments in the globe says a Jone Lang LaSalle (JLL) report. The city already is in the top twenty list of technology rich cities of the world. The cities that rank high in the commercial real estate investments in the world are Tokyo, London, New York and few others. The top five names of the cities that ranked high in the region of Asia Pacific are Singapore, Tokyo, Seoul, Hong Kong and Sydney. The report ranks these cities on the top five list based on the direct rolling of investment in the commercial sector taking into account the statistics of the last three years of the period ending on June 30th this year. Within the area of Asia Pacific the index has ranked Auckland and Sydney as the two locations where the commercial real estate investment has been high compared to their sizes. 

Bangalore was always at the top most preferred destinations of the NRIs as a recent survey conducted by an exhibition company inferred that in the UAE and the Middle East the city is at the 22nd rank in terms of preference. Mumbai was also in the list at the 20th position. With all these parameter it was evident that the city is a preferred destination for the residential investment. But this statistics was revealed which is a great news for the real estate sector and the denizens of Bangalore. The city is excelling in terms of commercial real estate investment. The experts say that for every 100 sq. ft. of commercial and office space investment there is a requirement of 600 sq. ft. of residential space. This goes to say that the residential sector will also excel at par which is undoubtedly good and great news for the realty sector.  This goes to say that there will be added demand of land plots in Bangalore and the demand is bound to rise as well.  

Another section of experts opine that the Indian cities are lagging behind in terms of foreign investment as most of the foreign capital seeping in the country or the real estate sector are through debt capital or are at the entity level. That is fairly the reason why the cities like Tokyo, Taipei, Singapore and Hong Kong are at the top of the list with high transparency levels and scores. But the experts opine that Indian cities with the scope of investment as shown by the GDP figures are high and would yield high rate of returns too. The experts further add that foreign interests in investment in the city may be under represented in the index calculation of JLL as the figures reflect equity investment. The reason is that direct foreign investment in the realty sector of India is difficult and it has either to be debt capital or the foreign investors has to go with the local partners in a joint venture.  

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