New Delhi (15th in real estate investment, 15th in real estate development)
- New Delhi has traditionally been focused more on residential development, so the downturn in the residential market nationally is probably felt more keenly here than in other parts of the country.
- With regard to investments in commercial real estate in New Delhi, India, take up of new office space is rising by around 30 per cent annually. It is strongest in Noida since Noida offers cheaper office facilities.
- The logistics sector in Delhi is also booming. While finding a good development partner in northern India remains a challenge, the demand for distribution and warehousing services remains high.
Bangalore (16th in real estate investment, 14th in real estate development)
- Bangalore has been undeniably the big success story of India’s IT park and business process outsourcing (BPO) sector.
- In Bangalore, India, investing in commercial real estate continues to expand at a breakneck pace.
- Absorption grew some 30 to 35 per cent year-on year in the first half of 2019, rentals have continued to rise and large pools of capital are available for further investment.
Mumbai (12th in real estate investment, 9th in real estate development)
- In Mumbai, India, investment in commercial real estate continues to go from strength to strength. Demand for office space continues to be very strong.
- The residential real estate sector, however, is as weak as the commercial side is strong, especially among the mid-tier development community, which is desperately short on capital. Further consolidation among developers, therefore, seems likely.
- Authorities continue to build out transport infrastructure, improving connectivity to new areas such as Navi Mumbai, which houses many new IT parks. While a potential oversupply situation may be brewing over the coming three-year period, these new facilities have better access to manpower as well as a lower cost of living.
- Capital values continue to trend upwards, driven by rising rents, and both foreign and domestic players are actively bidding for good assets whenever they come to market.