The IT capital of India, Bengaluru, has emerged among the top 10 cities in the Asia-pacific region for making cross-border real estate investments. The city is the tech-hub of India and one of the leading consulting firms has recently confirmed that in Bangalore, real estate investment has doubled in the last fiscal. In 2017-18, the investment in the real estate sector in Bengaluru was INR 5,600 crore, which has increased to INR 11,200 in 2018-19 fiscal. This is a piece of positive news for the real estate sector in India.
The government had decided to set up the REIT (Real Estate Investment Trust) in 2014. Since then, interest in the real estate sector in India has picked up the pace. Besides, the industry has benefitted from the reforms and regulations introduced by the government. Transparency and accountability in the real estate segment have improved manifold. A survey carried out recently has revealed that India is one of the leading five markets, that are preferred in APAC. In March 2019, the first REIT was set up as a joint venture. The potential growth opportunities in the real estate market and new trends are presently driving the real estate industry. The sentiments have improved among the buyers and investors are likely to be playing a more important role in the real estate industry in the coming years. From fund-raising to leasing and purchasing, the overall process is likely to be streamlined.
A property expert has stated that Bengaluru is the first city of India, that has made its way to the list of the preferred destinations for investments. The global reputation to be a hub for multi and transnationals has led to this status of the city. Besides, the tech city has got a strong base for talent. The infrastructure in Bengaluru is well-developed. It offers investment-grade offices, residential property and retail spaces.
According to the survey, the interest seems to be higher in office properties. Next, come logistics and industrial property, followed by multi-family hotels as well as retail spaces. These properties are inviting investments in the APAC areas. In India, the scope for investing in the real estate segment is high. The demand for logistics is increasing, and consumption too is on the rise. This is attracting the investors, who are looking for new investment avenues in the real estate market in India. The survey has revealed that Bengaluru has been one of the fastest developing Indian cities, thanks to the presence of international players in the IT, biotech, pharmaceuticals, biotech, manufacturing and IT segments. For investors and property owners, this is a good time to invest in real estate in Bengaluru. They can enjoy a good rental return in the coming months. This is a good time to make investments.