Bengaluru, Mumbai Asia's Top Investment Bets In 2017

At a time when sector experts are predicting tough times ahead for real estate, a survey by PricewaterhouseCoopers, a global professional services network, and Urban Land Institute, a non-profit research organisation, has ranked Bengaluru and Mumbai as the top investment bets in Asia in 2017. All thanks to the booming business process outsourcing and information technology services that have been driving the demand in the commercial space segments in the two cities.

For 2016, Bengaluru, which got number one ranking in the survey of 22 cities this year, was ranked 12, while Mumbai, ranked second in the list this year, was placed at the 13th spot. For 2014, the two cities stood at the bottom of the survey.

Also read: Monthly Watch: New Launches Up 127% In Bengaluru, Prices Stable

“There is little doubt that catering to the expansion requirements of the Indian BPO industry has delivered big profits to investors, who arrived early on the scene. Today, it remains a compelling story," the survey summary says.  

Japan capital Tokyo, which secured the top spot in the 2016 rankings, is now placed at the 12th spot. A report has attributed this fall to "declining economic prospects" that are "hurting short-term prospects for office rental growth, despite low vacancy rates".

"The big story for investors has long been the city's role as India's main hub for the business process outsourcing (BPO) and IT industries. There is a huge demand for space as both domestic and international companies flock to open call-in and research-and-development centers," says a report in Urban Land, a magazine published by Urban Land Institute. The Karnataka capital has secured the top ranking in terms of investment as well as development. 

About Mumbai, which is ranked second in investment and third in development, the report adds: "Mumbai's geography has prevented easy expansion of the city's metropolitan area, which has made it both the most expensive city in India and the slowest growing. A major road and rail infrastructure programme will allow for easier access to the centre from outlying areas, with most construction scheduled for completion before 2019."

Also read: Monthly Watch: New Launches Up 14% In Mumbai