- Real investments in Bengaluru have doubled in the past year
- Establishment of law to set up REITs one of the major reasons for increased interest
- India is one of the top 5 preferred APAC markets
Real estate investments in Bangalore might bring you great returns over investments. The city is among the top 10 cities in the Asia-Pacific region for cross border real estate investments.
Given its reputation as a home for multi-nationals, Bengaluru has become the first Indian city to be ranked on the list of preferred investment destinations.
Real Estate Investments In Bangalore
Over the last fiscal year, the value of real estate investments in Bengaluru has doubled. The Asia Pacific investor intentions survey 2019 by CBRE South Asia Ltd said that while investments in the fiscal year 2017-18 had been around INR 5,600 crores, they had touched INR 11,200 crores in the year 2018-19.
According to the survey, office properties held the greatest interest. This was followed by industrial and logistics related properties, multi-family properties, hotels, and retail spaces.
Real Estate Investments In Bangalore – Reasons for Growth
One of the reasons for an increased interest in the Indian realty sector was the establishment of a law in 2014 to set up a Real Estate Investment Trust (REIT). This brought transparency into the market.
The first REIT was set up in March 2019 as a joint venture between a global private equity firm Blackstone and Bengaluru city-based property developer Embassy. With this India became one of the top 5 preferred markets in the APAC.
Another reason for the increased interest in the real estate sector are the emerging opportunities for potential growth and new infrastructure. As people look at investing in office assets, quality buildings may become a fund-raising avenue for realty developers. This propels corporations to purchase and lease space for development.
The demand and consumption in the Indian logistics sector is another reason investors are being drawn to the realty market.
Realty Sector In Bengaluru
Bengaluru is one of the fastest growing cities in India. This rate of growth is majorly due to the presence of global players in the biotech, IT, manufacturing, pharmaceutical, and other such growing sectors.
Today, Bengaluru is considered to be India’s Silicon Valley; a far cry from the pensioner’s paradise, it once was known as.