Bengaluru, not Mumbai is preferred real estate

Bengaluru has overtaken Mumbai as the most preferred real estate investment destination in India, according to an report jointly published by the Urban Land Institute (ULI) and PricewaterhouseCoopers (PwC). The report titled ‘Emerging trends in real estate Asia Pacific 2016’ said Bengaluru is emerging as the real estate capital of India.

The report is based on the opinions of more than 400 internationally renowned real estate professionals including investors, developers, property company representatives, lenders, brokers and consultants.

“If someone has Rs 10,000 with him, he would rather put his money in Bengaluru than in Mumbai because you get more affordable apartments at that price in Bengaluru. Also, the investor is confident of the price appreciation in Bengaluru due to the absence of speculation,” Bhairav Dalal, partner, Tax and Regulatory Services, said.

He also said the e-commerce and startup boom in Bengaluru is driving office space absorption, which in turn is resulting in residential demand as well.

Interestingly, the survey also quoted a local consultant as saying: “What we’ve seen for the first time during the last 12 months is that firms that were originally based out of Delhi, Pune or Mumbai, grew to a $ 600-700 million valuation and were in the race for a $ 1 billion valuation have been pushed by their venture capital backers to relocate to Bengaluru, because that’s where you find the critical mass to be able to ramp up your business”.

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