Mumbai may be the best city in India for real estate investment and has the best residential real estate market among Indian cities, but has a long way to go when it comes to other top Asian cities. As per a report by PWC, Mumbai is 13 the best city to invest out of 22 Asian cities with Melbourne topping the charts.
Urban Land Institute and PWC jointly came up with the report Emerging Trends in Real Estate Asia Pacific 2019 recently. The report lists 22 top Asian cities that have real estate investment potential in which Mumbai ranked 13 while Bangalore and New Delhi sat at 16th and 17th spots respectively. Scroll down for the complete report.
Mumbai’s top spot among Indian cities is attributed to the rise in the activity of office spaces. Mumbai’s office market is less oriented towards ITled business parks and special economic zones than in Bangalore and Delhi.
However, being India’s rapidly growing capital markets means demand for high-quality offices is booming in Mumbai, so despite apparently high vacancies, ongoing shortages of modern office stock mean new supply tends to be absorbed quickly.
Additionally, Mumbai is seeing strong growth in coworking assets as well as in the retail sector. There is a scope of new opportunity to add value due to the huge presence of badly located and badly managed retail spaces.
The report mentions that many malls are attempting to revive their businesses by buying back strata space sold in previous years, vacating malls and then refurbishing to create more experiential environments. In the last 18 months, many large foreign asset managers have partnered with local developers with the intention of revamping well-located but poorly performing assets in retail portfolios across the country.
In terms of development potential in 2019, Mumbai is ranked 9th, while Bengaluru and New Delhi sit at the 14th and 13th spots, respectively, ULI and PwC said in the Emerging Trends in Real Estate Asia Pacific 2019 report.