Bangalore, Mumbai and Delhi seen major slippages as real estate investment destinations, according to a PricewaterhouseCoopers (PwC) report.
Bangalore, Mumbai and Delhi have slipped to the 19th, 20th and 21st positions this year from 10th, 15th and 12th positions respectively last
The report - Emerging Trends in Real Estate Asia Pacific 2013 Report - is based on responses from more than 400 people including real estate developers, investors and brokers.
The PwC list has been topped by Jakarta, Shanghai, Singapore, Sydney and Kuala Lumpur.
Bangalore is perceived to be a mature market and has demonstrated stable pricing and reasonable absorption trends, but its over-reliance on the sluggish global IT industry translates into low growth potential in the medium term, the report said. Mumbai, it said, is plagued by over supply across asset classes, resulting in record levels of vacancy and stagnant yields.
The report however holds out hope for the national capital region (NCR) in view of the expected new master development plans for Delhi, Gurgaon and Noida, perhaps indicating a flight of capital from western and southern India to the north in the medium term.
Real estate prices in Mumbai Metropolitan Region (MMR) and the NCR are expected to remain stagnant, industry experts have said. Demand in Mumbai and NCR have been sinking as prices remain high despite huge inventory pile up and debt accumulation.