Bengaluru: India's tech hub Bengaluru is ranked among top 10 Asia-Pacific cities for cross-border investments in real estate, said a leading consulting firm on Wednesday.
"Real estate investment in Bengaluru doubled to $1,600 million (Rs 11,200 crore) in fiscal 2018-19 from $800 million (Rs 5,600 crore) in fiscal 2017-18, said CBRE South Asia Ltd consultant firm from its Asia Pacific investor intentions survey 2019 finding.
Interest in Indian realty sector picked up after the central government framed a law in 2014 to set up the Real Estate Investment Trust (REIT), which brought in market transparency.
"India is among the top five preferred markets in APAC after the city-based property developer Embassy and global private equity firm Blackstone have set up the first REIT in March 2019 as a joint venture in the realty sector," revealed the survey.
The drivers for the new trend are new infrastructure and potential growth opportunities in the market.
"Improved investor sentiment in office assets is likely to make quality buildings as a fund-raising avenue for developers and propel corporations to lease/purchase space in these developments," said the finding.
CBRE Chief Executive Anshuman Magazine said Bengaluru figured as the first Indian city in the list of preferred investment destination, thanks to its global reputation as the home for trans and multi-nationals.
"The tech city with a strong talent base and quality infrastructure is popular for offering investment grade options in office, retail and residential segments," said Magazine on the occasion.
The survey noted greater interest in office properties, followed by industrial and logistics, multi-family, hotels and retail for investment in the APAC region.
"There is also scope for investment in India as rising consumption and growing demand in the logistics sector will attract investors to seek opportunities in the market," added Magazine.
The survey also found Bengaluru as one of the fastest growing cities in India owing to the presence of global players in IT, biotech, pharmaceuticals, manufacturing and other growth sectors.
"Over the past two decades, Bengaluru has transformed to India's Silicon Valley from being a Pensioners' Paradise' and has become the hub of research and innovation," added the finding.