Chennai among top 10 investor targets in Asia Pacific Region
Here's some good news for drought-ravaged Tamil Nadu, Chennai is among the six Indian cities on the list of top 10 metropolises in Asia-Pacific region targeted by investors.
'Betting on Asia-Pacific's next core cities', a report released by international realty consultant Cushman and Wakefield on Wednesday, put Hyderabad on top of the list followed by Bengaluru, Mumbai, Pune, Chennai and New Delhi from 6 to 10. Bangkok, Manila, Guangzhou and Shenzhen are second to fifth. Shortage of investment-grade assets in safe havens have prompted investors to turn to secondary tertiary markets. Most global investments this year would be in commercial office assets as leading Indian cities were well placed to outperform their counterparts in emerging Asia-Pacific economies, the report said.
In compiling the report, the agency used the strategic location indicator and selected emerging markets that will offer investors the opportunity to tap into long-term growth fundamentals. Niranjan Hiranandani, CMD of Hiranandani Communities, said "We are witnessing a paradigm shift in Indian real estate; that began with demonetization, legislation on benami properties, GST and now, implementation of RERA [Real Estate (Regulation and Development) Act, 2016]. Increased transparency and a corporate style of working will enhance trust factor in Indian real estate, and make these cities even more attractive to investors..."
Confederation of Real Estate Developers' Association of India president Jaxay Shah said the real estate sector was receiving policy attention with RERA, smart cities and housing for all. "But at the same time, let us also admit that in today's globalised environment and intense competition for capital, no economy can take its place for granted. It is a sobering thought that India ranks 183rd of 189 countries in ease of doing business as far as real estate is concerned." Recommended By Colombia Asia Pacific remains a viable target for global capital, said Siddhart Goel, senior director (research services), Cushman & Wakefield."After entering in 2005 to 2008, global investors are now well equipped to take advantage of the potential of Indian real estate markets. The country is firmly on track to become an economic powerhouse with strengthening GDP, better business environment and investor-friendly policies by the central government. Despite concerns about global events such as Brexit and changing US immigration policies impacting the IT-BPM sector in India, we have seen that sectors such as BFSI, healthcare, consulting services and various manufacturing industries are increasingly driving demand for "After entering in 2005 to 2008, global investors are now well equipped to take advantage of the potential of Indian real estate markets. The country is firmly on track to become an economic powerhouse with strengthening GDP, better business environment and investor-friendly policies by the central government. Despite concerns about global events such as Brexit and changing US immigration policies impacting the IT-BPM sector in India, we have seen that sectors such as BFSI, healthcare, consulting services and various manufacturing industries are increasingly driving demand for com mercial spaces," he said. Net absorption in the top eight Indian cities was nearly 35 million sq ft in the last three years even as the share of the ITBPM sector in commercial office leasing went down from 65%-70% to 52%-55%. Within Asia Pacific, India is expected to continue to contribute hugely to the total office demand. While uncertain global politics and protectionist trade policies continue to cause concern, they are not likely to pose a high risk to Asia Pacific's outlook. The increasing focus on stability and growth in the region is a major attraction. The realty sector in Asia Pacific is expected to attract $611 billion this year, with the first quarter already bringing $136 billion.
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