Bengaluru is the first
Indian city to feature in top-ten destinations for cross-border investors
across Asia Pacific in 2019
-
In 2017-18, the total real estate investment in Bengaluru was almost USD
800 million, this investment more than doubled annually in 2018-19
-
Stronger interest in India is attributed to the launch of first Indian
REITs and the resulting enhanced market transparency
New Delhi, 19
June 2019: CBRE South Asia Pvt. Ltd, India’s leading real estate consulting firm’s
Asia Pacific Investor Intensions Survey 2019 findings revealed that Bengaluru –
the capital city of Karnataka- for the first time has featured in the list of
top ten destinations for cross-border investment across Asia Pacific.
The survey revealed that India was among the top five preferred markets
in APAC on the back of the launch of the
first REIT (Embassy-Blackstone) and the resulting improved market transparency.
The drivers for this trend were new infrastructure and potential growth
opportunities in the market.
The first REIT by Embassy Group and Blackstone Group LP was launched in
India in March this year and it is expected to catalyse investments in the
country. Improved investor sentiment in office assets is likely to expose
potential quality buildings as a fundraising avenue for developers and also
propel major corporations to lease / purchase space in these developments.
Commenting on the
findings of the surveyAnshuman Magazine, Chairman and CEO, India, South East
Asia, Middle East and Africa, CBRE said, “Bengaluru featured as the first
Indian city in the list of preferred investment destination on the basis of its
growing reputation across the globe as the home base to several international
corporates. The city with a significant talent base and world-class
infrastructure is also popular for offering several investment grade options in
office, retail as well as residential segments.”
On the overall positioning of the Indian real estate market in APAC, he
added, “A stronger interest in office properties followed by industrial &
logistics, multifamily, hotels and retail were the preferred sectors of
investment in APAC. There is significant scope for investment in India and the
rising consumption and growing demand in the logistics sector, particularly, will
continue to stimulate investors to seek opportunities in this market.”
Other key
findings of the survey:
-
In
almost all the geographies across APAC, the lack of investible stock for sale
remains a major challenge for investors. The acquisition of numerous
institutional-grade properties by long term buyers in recent years has
constrained the availability of assets in developed markets, particularly
Singapore, Hong Kong and Japan.
-
Despite the risk
factors at the forefront of investors’ concerns, buyers continue to seek higher
returnsand are focused on value-added and opportunistic deals in the emerging
markets such as India. This rising interest has propelled Bengaluru into the
top ten destinations for cross-border investors for the first time since the
survey beganin 2014.
-
More
investors in APAC are consideringlending against assets rather than taking
equity
-
Positions
as loan to value ratios tighten and banksadopt a more conservative attitude
towards realestate financing. Other niche sectors attracting investor interest
in APAC include retirement living, supported by ageing populations in Asia;
data centres, driven by the increasing use of cloud computing; and healthcare,
underpinned by demographic changeand the emerging focus on wellness.
Some key facts about Bengaluru:
Bengaluru
is considered as one of the fastest growing cities in India with the presence
of important players from the areas of information technology, biotechnology,
pharmaceuticals, manufacturing and other sectors. In the past two decades, it
has transformed from being a ‘Pensioners’ Paradise’ to India’s ‘Silicon Valley’
and has become the hub of research and innovation.
·
Known
as one of the key investment destinations in the country, Karnataka’s Ease of
Doing Business ranking was eighth across India in 2017, ahead of Maharashtra
and Tamil Nadu.
·
On
the Social Progress Index 2017, Karnataka ranked second after Delhi.
·
While
Karnataka is the leading state in the machine tools industry, Bengaluru alone
produced 60% of machine tools (in terms of value) in the country in 2018.
·
Bengaluru
was ranked first on the 'Best place to live and work' list by Mercer in 2018.
·
In
2017-18, the total real estate investment in Bengaluru was almost USD 800
million, this investment more than doubled annually in 2018-19.
Commercial assets were a prominent choice for investors.
·
Bengaluru
ranked second on the Global Startup Ecosystem Growth Index by 'Compass'
Infrastructure in 2018.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500
and S&P 500 company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (based on 2017 revenue).
The company has more than 80,000 employees (excluding affiliates) and serves
real estate investors and occupiers through approximately 450 offices
(excluding affiliates) worldwide. CBRE offers a broad range of integrated
services, including facilities, transaction and project management; property
management; investment management; appraisal and valuation; property leasing;
strategic consulting; property sales; mortgage services and development
services. CBRE was the first International Property Consultancy to set up an
office in India in 1994. Since then, the operations have grown to include more
than 8,000 professionals across 10 offices with a presence in over 80 cities in
India. As a leading international property consultancy, CBRE provides clients
with a wide range of real estate solutions, including Strategic Consulting,
Valuations/Appraisals, Capital Markets, Agency Services, Asset Services and
Project Management. The guiding principle at CBRE is to provide strategic
solutions that make real estate holdings more productive and economically
efficient for its clients across all service lines.
CBRE has been included in the Fortune 500
since 2008, ranking #207 in 2018. It has also been voted the industry’s top
brand by the Lipsey Company for 17 consecutive years and has been named one of
Fortune’s “Most Admired Companies” in the real estate sector for 6 years in a
row.
Follow
us:
For more
information:
Anshuman Dutta
Anshuman.gunjan@cbre.com
Mobile: +91 9971553969
Supreet Ahuja
supreet.ahuja@adfactorspr.com
Mobile: +91 99992 02252
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