Mumbai: Domestic as well as international investors are looking at newer cities with stable assets for investments, a trend that will be prominent in 2014, and accordingly Chennai jumps to the hot-list for the first time, says a PwC survey.
According to the survey, titled ‘Emerging trends in real estate in Asia Pacific 2014’, Chennai has for the first time emerged in the top 25 real estate destinations list in the Asia Pacific region.
“Cities like Bangalore, Delhi and Mumbai have been in the top 25 list as preferred destinations. However, for the first time, investors have chosen Chennai as one of the destinations for investment.
This indicates that there has been a slight shift in investor interest from conventional assets in prime markets to newer and stable assets in niche markets,” PwC India executive director Gautam Mehra said.
While Bangalore ranked 20th in the list, Delhi stood at 21st, Chennai 22nd and Mumbai 23rd. Bangalore and Mumbai have slipped from their positions compared to 2013 rankings where they stood at 19th and 20th position, while Delhi maintained its ranking at 21st position.
The report is based on the opinions of over 250 globally- renowned real estate professionals, including investors, developers, property company representatives, lenders, brokers and consultants.
“These low ratings are attributed to the ongoing economic problems, an uncertain currency outlook following a mid-year plunge in the value of the rupee, and an investment environment widely perceived to be unfriendly to international investors. However, interest in domestic markets remain strong,” he said.
With national elections looming and reports on the ground suggesting th-at the tide may be turning in receptivity to foreign investment, many foreign funds are waiting to see what happens, Mehra said.
He further noted, "in the backdrop of the outlook emanating from the report, a more conducive environment will set the ball rolling.”
