Bengaluru, Chennai, Hyderabad, Pune may attract highest investment in office assets this year

03 May 2017 Editorial Team

Asia Pacific volume accounts for 44 per cent of global investments, higher than North America (34 per cent) and EMEA (22 per cent).
APAC remains a beacon for emerging market prospects and a hotbed for development opportunities.

With real estate investment volume in Asia Pacific expected to hit US$ 611 billion in 2017, India is projected to be one of the best placed among emerging markets according to Cushman & Wakefield’s The Atlas Summary 2017, which analyses and predicts future trends in real estate investment activities across the world. While real estate investment volumes in Asia Pacific are expected to increase only marginally by 1.6 per cent from the US$ 601 billion in 2016, the region will still account for 44 per cent of the total global real estate investment volume of US$ 1.39 trillion expected in 2017.

Siddhart Goel, Senior Director, Research Services at Cushman & Wakefield says, “The global real estate investment volumes in India amounted to US$ 4,731 million in 2015 and US$ 4,871 million in 2016, indicating a 3 per cent annual increase and 2017 is expected to mark a similar investment volume. This is because global investors are optimistic that despite the withdrawal of high value bank notes resulting in a short-term fall in economics activities, the reduction in its grey economy and recent electoral gains will strengthen Prime Minister Modi’s hand to push through reforms to boost long-term economic potential. Most of the global investment for this year will be made in commercial office assets as markets in Bengaluru, Chennai, Hyderabad and Pune are well placed to outperform other cities from emerging economies in Asia Pacific.”

Outsourcing will continue to push demand in the leading tech hubs while co-working will add to demand in gateway cities. Some of the leading emerging market opportunities will be found in Asia, particularly if economic conditions stabilise and reforms continue. The region overall is in a stronger position than in past cycles with economic resilience generally up.

Patterns of performance will however polarise further as a function of macro-economic risks. The changing and polarising nature of the monetary cycle and quantitative easing will add to uncertainty. Investors need to focus on the fundamentals and on what makes a city and a property work for its occupiers. Hence, the current pressures on the market are only going to increase: Be that the pressure to find stock, the pressure to raise prices or the pressure to find new areas of opportunity.

Asia Pacific volume accounts for 44 per cent of global investments, higher than North America (34 per cent) and EMEA (22 per cent). APAC remains a beacon for emerging market prospects and a hotbed for development opportunities. With real estate investment volume in Asia Pacific expected to hit US$ 611 billion in 2017, India is projected to be one of the best placed among emerging markets according to Cushman & Wakefield’s The Atlas Summary 2017, which analyses and predicts future trends in real estate investment activities across the world. While real estate investment volumes in Asia Pacific are expected to increase only marginally by 1.6 per cent from the US$ 601 billion in 2016, the region will still account for 44 per cent of the total global real estate investment volume of US$ 1.39 trillion expected in 2017. Siddhart Goel, Senior Director, Research Services at Cushman & Wakefield says, “The global real estate investment volumes in India amounted to US$ 4,731 million in 2015 and US$ 4,871 million in 2016, indicating a 3 per cent annual increase and 2017 is expected to mark a similar investment volume. This is because global investors are optimistic that despite the withdrawal of high value bank notes resulting in a short-term fall in economics activities, the reduction in its grey economy and recent electoral gains will strengthen Prime Minister Modi’s hand to push through reforms to boost long-term economic potential. Most of the global investment for this year will be made in commercial office assets as markets in Bengaluru, Chennai, Hyderabad and Pune are well placed to outperform other cities from emerging economies in Asia Pacific.” Outsourcing will continue to push demand in the leading tech hubs while co-working will add to demand in gateway cities. Some of the leading emerging market opportunities will be found in Asia, particularly if economic conditions stabilise and reforms continue. The region overall is in a stronger position than in past cycles with economic resilience generally up. Patterns of performance will however polarise further as a function of macro-economic risks. The changing and polarising nature of the monetary cycle and quantitative easing will add to uncertainty. Investors need to focus on the fundamentals and on what makes a city and a property work for its occupiers. Hence, the current pressures on the market are only going to increase: Be that the pressure to find stock, the pressure to raise prices or the pressure to find new areas of opportunity.