Zee Media Bureau
Mumbai: As per a report, Bengaluru and Mumbai are all set to be top two realty investment spots for 2017 in the Asia-Pacific (APAC) region, says a report.
While capital of the Philippines, Manila got the third spot, Ho Chi Minh City in Vietnam and Shenzhen in China stood fourth and fifth, respectively.
The PwC-Urban Land Institute report further said that the domestic realty market as a whole has become a compelling story, thanks to the availability of high-quality assets that offer good yields as well as strong tenant demand and falling financing rates.
In development category, Bengaluru retained the first spot followed by Ho Chi Minh City, Mumbai, Manila and Shenzhen, it said.
Though Bengaluru topped in investment and development across APAC region, the headwinds facing the BPO industry -- the mainstay of city's realty market -- post Donal Trump's win in the US presidential election, needs to be seen how it will fare.
"While Bangalore has emerged as the top real estate market in the country, peak growth in the city is now behind it. Strong demand from IT and e-commerce sectors is likely to continue, but questions over the long-term prospects of the BPO sector have emerged," PwC India partner & leader for real estate Abhishek Goenka said.
Regarding Mumbai, the report said that the geography has prevented easy expansion of city's metropolitan area, which has made it both the most expensive city in the country and the slowest growing.
But a major road and rail infrastructure programme will allow easier access to the centre from outlying areas, with most construction scheduled for completion before 2019, it noted.
"Mumbai on the other hand, while constrained by geography, is now seeing a strong recovery with the market no longer dominated by financial players. Vacancies remain north of 20 per cent, but occupancy problems tend to affect only less desirable buildings, with good-quality assets continuing to see strong demand and rental growth," Goenka said.
On the Delhi-NCR region as one of the country's most important commercial and logistics hubs, PwC's real estate tax partner Bhairav Dalal said, the faster growth of new infra work in the form of high-speed railway network in New Delhi bodes well for demand for commercial facilities.