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Indian Real Estate News : Mumbai
Mumbai Ranked as the Most Favoured Development Market in Asia Pacific Region
Source: economictimes.indiatimes.com Jul 08, 2011
Mumbai is ranked third as the most promising investment market, and the first as the most favoured development market, in the recent Emerging Trends in Real Estate Asia Pacific 2011, a real estate forecast jointly published by the Urban Land Institute (ULI) and Pricewaterhouse-Coopers (PwC).

"Projections for Mumbai in 2011 look good, as the city's investment ranking rises five spots to third," the report states, adding that this city is "clearly the best performing and most active real estate market" . Development in Mumbai continues to be an area of interest, with the city ranking first in the 2011 results, up from sec ond in 2010. Oversupply continues to be a serious risk for the area, but respondents "don't think many people are worried about real estate turning into a bubble again" .

"In terms of investment, buying opportunities 'ring out' in the retail, apartment and industrial sectors," the report adds. The report also notes that India's GDP continues to grow and shows "no real signs of declining anytime soon" . Over the past 30 years, it says, the country has managed to sustain a GDP growth rate average of 10%. Projections for 2011 are 8.5%, and forecasts are for growth of between 9% and 10% by 2015.

 This is a significant move from the mid-6 % range found in the early 2000s. To support this economic expansion, there has been a large amount of growth in the working population of India. Also, the government continues to make progress in introducing reforms that have helped the country introduce new private equity to capital markets, create a new platform of employment, and inject capital into infrastructure programmes.

Exports of both goods and services from this region continue to increase, marking more business interest abroad. Speaking of the region as a whole, the ULI/ PwC report also states that the "cloud has been lifted" from Asia Pacific real estate markets , with the fiscal outlook for most of the Asian countries more promising than that for Europe or the United States. "Many , if not most, Asian economies have rebounded to pre-crisis levels, and real estate markets, although mostly slower, are headed towards some semblance of normalcy," said ULI Asia Pacific chairman C Y Leung.

Leung said that steady activity by buyers indicates that Asia's real estate markets "are strong enough to grow into the high expectations current pricing trends imply" , particularly because of the shortage of both housing and commercial properties that persists in many areas. "The economies and financial systems in Asia-Pacific have gradually improved over the years.

The demand for property, especially in the emerging markets, has been growing. With the release of QE2 (a second round of quantitative easing by the Federal Reserve Board) in the US, more funds are expected to flow into Asia-Pacific markets. Property would be an alternative choice of investment after equities," said K K So, Asia-Pacific Real Estate Tax Leader of PwC. "However , investors should avoid taking excessive credit risks, and pay attention to policy changes," he added.

Tag: Real estate in mumbai, mumbai properties, property in mumbai
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