Mumbai ranks 10th in the list of most attractive real estate investment destinations among the 20 Asia-Pacific cities studied for the Emerging Trends in Real Estate Asia Pacific 2008 investor survey, carried out by the Urban Land Institute (ULI) and PricewaterhouseCoopers. Shanghai, Singapore and Tokyo are ranked the top three cities in terms of investment prospects in Asia Pacific. Mumbai (10th), Bangalore (12th) and New Delhi (13th) retained their positions within the top 20 Asian cities from the standpoint of investment prospects. Mumbai’s ranking rose from 17th in 2007 to 10th in 2008. Survey respondents attributed the jump in Mumbai’s rank to its “booming commercial activities”.

According to PricewaterhouseCoopers sector leader (investment management & real estate) Gautam Mehra, “The overall response from investors towards India continues to be bullish, with strong buy/ hold recommendations for the major cities of Mumbai, New Delhi and Bangalore across various property sectors. India is attracting huge global capital, although the sheer volume of new capital has elicited a cautious tone from interviewees.”

In terms of favoured property types, the hotel sector is ranked the most attractive for investment in Asia Pacific cities. This is on account of rising demand for hotel rooms both from business travellers and tourists, which has led to high rentals and low vacancies in many of the major cities in the Asia-Pacific region. Ho Chi Minh City ranks first in the list of Asia Pacific cities that are most attractive for investment in the hotel space. Bangalore, Shanghai, Mumbai and New Delhi follow in the rankings.

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