Bengaluru is India’s top property investment destination

Bengaluru has emerged as the very best property investment destinations in India, defeating New Delhi and Mumbai, helped by strong interest in office spaces, in accordance with a report.

The IT capital rates 20th in property consultancy company JLL’s Asia Pacific City Investment Intensity Index, compared to 34th and 42nd for New Delhi and Mumbai respectively. That is Bengaluru’s maiden entry to the list prepared by JLL, after figuring in a report of top 20 technology-affluent cities internationally earlier in 2013.

The report compares the quantity of direct property investment above a three-year period relative to the existing economical magnitude of a city. Within Asia Pacific, Sydney ranks first followed by Auckland for the latest Q2 2015 Index s when it comes to property investment relative to city size. On average, commercial property assets worth 10% of city GDP change hands every 36 months.

Bangalore is a smaller city as opposed to political and financial capitals of India and yet manages to bring lots of investment in comparison of its own size,” Anuj Puri, chairman and state head, JLL India, said. Private equity firms have invested about 13%, or $870 million, in Bengaluru’s property marketplace, between 2013 and the initial half of 2015, from the entire investment of $6.7 billion.

Demand for quality office spaces in IT parks has been exceptionally high in Bengaluru, which has brought global players in town. The existence of multinationals, who also intends to ramp up their operations in town, helps in ensuring steady rental returns for the property players. Embassy, as well as private equity firm Blackstone, purchased a majority position in the 106 acre business park Vrindavan Tech Village in Bengaluru for Rs 1,951 crore last year, making it one of the biggest commercial real estate transactions in India.